KAS Japan Weekly COVID-19 Updates

COVID-19 and globalization

COVID-19 is forcing a re-examination of globalization. As economies reopen, analysts have observed growing bias towards self-reliance and worrying trends on the politicization of travel and migration.

KAS Japan Weekly COVID-19 Updates

26 May 2020

KAS Japan Weekly COVID-19 Updates

Asia's stimulus packages

Governments across Asia are releasing massive stimulus packages as COVID-19 pushes economies into recession.

KAS Japan Weekly COVID-19 Updates

19 May 2020

On May 18, the Government of Japan released the Quarterly Estimates of GDP for January - March 2020. Key messages include: The first quarterly GDP stood at minus 3.4%, which was not as bad as expected. The figure for the second quarter is said to be some minus 20%, which would be worse than that when we had the Great East Japan Earthquake in 2011. GOJ may soon lift the state of emergency off from Tokyo as the new infection cases decrease to 100 or less day to day. Cabinet Office of Japan https://www.esri.cao.go.jp/jp/sna/data/data_list/sokuhou/gaiyou/pdf/main_1e.pdf

KAS Japan Weekly COVID-19 Updates

How Asia is reopening amidst COVID-19

Some Asian countries are beginning to ease lock downs and cautiously reopening economies amidst the threat of case resurgence.

KAS Japan Weekly COVID-19 Updates

12 May 2020

GOJ extended the state of emergency to the end of May. As the Golden Week (Japanese national holidays in early May) ended, discussions on exit strategy has become active in the politcs. GOJ is likely to remove the state of emergency off from 34 prefectures. The infected cases has fallen to 100 or less in the past days. GOJ's criteria for lifting the state of emergency are: (1) Situations of infected cases in each prefecture (2) Situations of prefectural medical system (3) Function of monitoring system. Nikkei poll found 55% of the respondents were not in favor of GOJ's measures to Covid-19, 11 percentage points down from the previous one.

KAS Japan Weekly COVID-19 Updates

28 April 2020

On April 27th, the Government of Japan finally submits emergency economic package to the National Diet. Japanese economy will keep facing economic challenges. Further measures to be taken by the country. Key messages include: 1) The Bank of Japan made a fiscally bold decision to abolish its cap to buy national bonds. 2) Political parties are figuring out how to fund rent expenses for SMEs. The oppositions are steps ahead. 3) The Government further upgrades its financial support to SMEs by paying practically 100% of leave allowances under certain conditions.

KAS Japan Weekly COVID-19 Updates

21 April 2020

Government of Japan last week extended a state of emergency to all over the country and has made a major change to emergency economic package. Key messages include: 1. GOJ will pay JPY 100,000 to all citizens in the country instead of JPY 300,000 to families in financial difficulties. 2. Komeito, LDP's junior coalition partner strongly pressured PM Abe to change the plan. Usually, budgets stay as they are once approved by Cabinet. 3. This development was unusual and has cast shadow over PM's clout and leadership.

KAS Japan Weekly COVID-19 Updates

14 April 2020

The Bank of Japan (BOJ) survey finds that business sentiments of large enterprises in the manufacturing industry fell to minus 8 points (-8). The Cabinet Office abandons the hope of recovery in their March 2020 report and admits that the Japanese economy is in a severe situation, the worse state in the last seven years. A high probability of negative GDP growth is projected by the Nomura Research Institute for the second quarter (April to June) of 2020.

KAS Japan Weekly COVID-19 Updates

Updates on the latest economic outlook for developing Asia

Growth will slowdown to 2.2% while inflation will rise to 3.2% in 2020 due to the COVID-19 pandemic. No country will escape the economic impact of the pandemic but more open, trade and tourism-dependent countries will be hit the hardest. The economic impact may spillover to the rest of the economy and trigger a financial crisis if governments fail to take quick and decisive policy actions.