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Strategy needed for economic recovery with eye on pandemic

20 3 0
03.07.2020

Japan is at a critical juncture in its struggle to resuscitate its debilitated economy without allowing a resurgence of new coronavirus infections.

It is vital to improve the levels of controlling the epidemic and reactivating the economy while maintaining a balance between these two factors.

The Bank of Japan’s latest “tankan” quarterly business confidence survey for June shows the sentiment among large manufacturers fell to its lowest point since the global recession triggered by the collapse of U.S. investment bank Lehman Brothers in 2008.

Business confidence among small and midsize firms has also nosedived, and businesses are expecting even darker days ahead. The number of companies experiencing a surplus of labor has increased significantly, a radical change from the labor shortages they were facing a while ago.

In late May, the government started easing COVID-19-related voluntary restrictions, allowing businesses to reopen. Consumer spending has since picked up slightly, but full economic recovery is still far off.

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© The Asahi Shimbun