Japan’s recession fears deepen with half economy in emergency

Less than usual passersby are seen at a pedestrian crossing at Ginza shopping and amusement district during the outbreak of coronavirus disease (COVID-19) on the day before a state of emergency is expected to be imposed at in Tokyo, Japan April 7,2020. REUTERS/Issei Kato

TOKYO: Half of Japan’s economy is set to enter a state of emergency as the government strengthens its response to the coronavirus, deepening fears that output will plunge by as much as 20% in the current quarter.

Prime Minister Shinzo Abe(pic below) will make an emergency declaration for Tokyo, Osaka and five other prefectures empowering local authorities to urge people stay at home for one month. He will also unveil details of a record stimulus package worth close to US$1 trillion as he tries to stop the economy entering free fall.