KAS Japan Weekly Covid-19 Update

Next week, Yoshihide Suga will formally be Abe’s successor. What are the factors that LDP Diet members opt for Suga? Key messages include: 1. LDP Diet members have sought for continuity though the majority of general public until August disapproved Abe or GOJ’s responses to COVID19. 2. Factions one after another supported Suga, they couldn’t miss the bus. 3. Kishida’s weak leadership was centrifugal factor, instead gave impetus to Suga. 4. Skipping general LDP members all over the country is a big disadvantage for Ishiba. LDP factions get attempted to hold on to the winning horse. 5. Suga’s appointment to be as PM seems ironic for his belief that party factions’ role had long gone.

KAS Japan Weekly COVID-19 Updates

Digital trade expands

COVID19 has accelerated the adoption of digital technologies and services, allowing trade to virtually continue despite movement restrictions.

Prime Minister Abe's resignation

On August 28, Prime Minister Abe announced his resignation from the top position due to his long-held illness. Listen to our analysis of Shinzo Abe‘s resignation as Japan‘s longest serving Prime Minister. Will his move destabilize LDP? Are Japan’s days of political stability over? How much of his legacy will remain and who would be the most suitable successor - especially in the eyes of a strong EU-Japan partnership.

KAS Japan Weekly Covid-19 Update

25 August

Yesterday (August 24), Shinzo #Abe became #Japan 's longest continuously serving PM with 2,799 days in office. This represents Abe’s strength. (He already had become the longest serving PM last November, totaling the days in office in his 1st term) Cabinet #reshuffling is expected in September. Key messages are: 1) Two backbones in the Cabinet will remain. #LDP SG Nikai may be replaced by Abe’s favorite successor, Kishida. Meanwhile in the LDP some voice that he may keep the Cabinet over the growing concerns on Abe’s health condition. 2) #Covid-19 is giving him hard time and his disapproval rate is highest ever. 3) One more year left as LDP President / practically as PM. Whether he can dissolve the Lower House before the end of the House’s term and if the Olympic Games will take place in a ‘complete form’ are uncertain.

KAS Japan Weekly COVID-19 Updates

Aging economies and fiscal stimulus

The latest research from the IMF has found out that fiscal stimulus is less effective in aging economies compared to economies with a younger population.

KAS Japan Weekly COVID-19 Updates

COVID-19 and Trade Imbalances

The IMF’s latest External Sector Report finds that there is limited reduction in global current account deficits and surpluses despite a slow down in global trade.

KAS Japan Weekly COVID-19 Updates

4 August

Unemployment rate in June stood at 2.8%. It’s 0.1 percentage point down from May. Is it any good sign? Key messages include: 1. Those who lost their jobs have turned themselves into freelancers, however there’s no assurance that it will last. 2. The ratio of involuntary unemployment is rising. In Japan almost 40% of the workers are non-regular employment. 3. Non-regular workers could be targeted with termination of contracts. The unemployment rate may then become much higher. Watch the video to learn more!

KAS Japan Weekly COVID-19 Updates

22 July

Thirty-five percent of medical institutions would pay less or cut bonus as hospital management is deteriorating due to Covid-19 as people refrain from going to hospitals. Key messages include: A survey by Japan Hospitals Association in May found the profits of about 1,200 hospitals went negative in April. Covid-19 treatment hospitals were more severely hit. Their revenues plummeted. The Government of Japan must support the hospitals to avoid their services going out, which is widely shared across the political spectrum.

KAS Japan COVID-19 Weekly Updates

Remote work isn’t for everyone

A research in progress initiated by the IMF estimates that around 97.3 million workers or equivalent to about 15 percent of the workforce across 35 advanced and emerging countries are at a high risk of layoffs and furloughs.

KAS Japan Weekly COVID-19 Updates

14 July

The Government of Japan(GOJ) will finalize its annual policy #blueprint (Honebuto) this Friday (July 17). One of the key points is the government’s digitalization, which Covid-19 is pressing. Key messages include: 1. GOJ sets another twelve months to come as a focus period for its own digitalization and intend to replace paper by online. 2. Linking social numbers allocated to all the people (My-Number System) to other information is to be considered as one way to accelerate the digitalization. 3. Lessons learned for the two decades have to be well made use of. Watch the video to learn more!