Coronavirus: Japan’s Shinzo Abe proposes state of emergency, US$1 trillion stimulus package

A month-long emergency, which falls far short of the strict lockdown measures seen elsewhere, will be declared for Tokyo, Osaka, and five other prefectures

More than 3,500 people have tested positive for the coronavirus in Japan and 85 have died

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Japan's Prime Minister Shinzo Abe speaks to the media on Japan's response to the coronavirus disease, at his official residence in Tokyo. Photo: Reuters

Reuters,BloombergandAgence France-Presse

Published: 5:23pm, 6 Apr 2020Updated: 9:44pm, 6 Apr 2020

Japan is to declare a state of emergency in Tokyo and six other prefectures as early as Tuesday in a bid to stop the coronavirus, Prime Minister Shinzo Abe said, with the government preparing a stimulus package to soften the economic blow.

Abe said the stimulus package worth 108 trillion yen (nearly US$1 trillion) and equivalent to 20 per cent of Japan’s GDP will be rolled out this week. It surpasses the 60 trillion yen (US$550 billion) package recommended by Abe’s ruling party last week.

The package will include cash handouts worth 6 trillion yen for households and small businesses hit by the virus and offers businesses deferrals on tax and social service costs worth 26 trillion yen, Abe said. The first phase aims to stop job losses and bankruptcies, while a second round of aid, after the virus is contained, will try to support an economic recovery.

“We hope to declare a state of emergency as early as tomorrow after listening to the opinions of the advisory panel,” Abe told reporters on Monday evening.

Japan's Prime Minister Shinzo Abe takes off his face mask as he arrives to speak to the media. Photo: Reuters

“We’re currently seeing rapid increases of new infections particularly in urban areas like Tokyo and Osaka,” he said. “Considering that medical institutions are facing a critical situation, I have received opinions that the government should prepare to declare a state of emergency.”