Mar 09, 2020 (Japan Today) - A legal change this week will allow Prime Minister Shinzo Abe to declare a state of emergency to address the new coronavirus outbreak if he deems it necessary.
But as the total number of infections in Japan surpasses 1,000, including about 700 from a quarantined cruise ship, the new power symbolizes a dilemma for Abe: Bolder steps to curb infections raise the chances of the economy slipping into a recession.
Abe, who faced criticism for being too relaxed in his initial response to the outbreak, has recently taken tougher action. Steps include a closure of schools that took many by surprise and most recently restrictions on visitors from China and South Korea that could severely hit the tourism industry.
"We have been causing great trouble to the Japanese people as we are implementing measures to prevent the spread of new coronavirus infections," Abe told a government task force meeting on Saturday.
Having shut most schools a few weeks ahead of the spring break that precedes the new academic year in April, Abe is following up with support measures for working parents, many of whom will need to take time off to take care of children suddenly at home.
A fresh emergency package to be compiled on Tuesday, meanwhile, will likely include such steps as the launch of a zero-interest loan scheme for small and midsize companies struggling to stay afloat as the virus scare dampens activities.
Sports and music events have been cancelled and popular leisure spots such as theme parks closed to reduce group transmission risks, while many are shunning going shopping or eating out. Some economists say consumers are drawing in their horns even more than in the aftermath of the earthquake, tsunami and nuclear disasters of 2011, when a mood of restraint in sympathy for victims slashed spending.
The economy shrank an annualized real 6.3 percent in the October-December period, the sharpest fall since 2014, as a consumption tax hike in that quarter apparently took its toll.
