Prime Minister Yoshihide Suga has briefly put virus containment ahead of the economy by temporarily halting a nationwide travel campaign aimed at spurring spending among consumers, including older residents.
The septuagenarian leader needs to get more people of his own generation spending if he wants to keep the economy’s recovery on track over the coming months. People over the age of 65 make up 29% of the population and account for almost 40% of the consumer spending that is the biggest driver of Japan’s economy.
The demographic also has the largest share of deaths from COVID-19. So while much of Suga’s ¥73.6 trillion stimulus package focuses on making the economy greener and more digitalized in the future, its near-term fate depends more on making sure it’s safe for older people to spend both in their neighborhoods and on trips.
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