The recent surge in new COVID-19 cases in Japan’s major prefectures is roiling the outlook for the world’s third-largest economy after it had seemingly passed through the worst of the pandemic.
Authorities fearful of the economic fallout are expected to be cautious about again requesting business suspensions, but the wider spread of infections could leave consumers in the mood for self-restraint, economists point out.
They warn that some business operators would not be able to sweat out another consumption downturn and they may well be prompted into cutting employees’ salaries or slashing jobs.