Economy | Discuss Japan - COVID-19 - パート 3

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No.
Archives, Economy  Jul. 1, 2020

Keidanren Chairman’s strategy for overcoming the global crisis: Executives must perceive “change as opportunity”

Nakanishi Hiroaki, Chairman, Keidanren, Executive Chairman, Hitachi, Ltd. No prospect of much-needed international cooperation ―The Japanese government has acknowledged with regard to the impact of the COVID-19 pandemic that the global economy is now truly facing the greatest crisis in the postwar period. Nakanishi Hiroaki: The “Keidanren’s Urgent Proposal to counter Coronavirus disease (COVID-19) Pandemic,” issued by Keidanren (Japan Business Federation) on March 30, also positioned the COVID-19 pandemic as a “dilemma, which is unprecedented in modern times” and then called for action, including “fiscal measures on a scale equal to or greater than the measures taken in the event of the financial crisis of 2007–2008,” saying “the implementation of additional measures, as well as providing focused support to workers and businesses who are truly in need is essential.” The worst part of it all is not knowing when or how the situation will ... ... [Read more]

No.
Archives, Economy  Jun. 16, 2020

Coronavirus Hits Japanese Economy: An unprecedented composite crisis halting demand, supply and income

Komine Takao, Professor, Taisho University   The economic shock sparked by the COVID-19 coronavirus appears to be unprecedented in terms of its magnitude and the level of difficulty in addressing it. At the time of writing, early April 2020, the crisis is ongoing and the situation is changing from moment to moment. The whole picture is as of yet unknown. The following discusses the challenges that lie ahead of the Japanese economy based on the information that is available so far. An abrupt change in circumstances and a colossal dive The coronavirus crisis has several unique characteristics. The first is the speed of the deterioration of economic conditions. As discussed below, the Japanese economy is facing the impact of multiple negative factors. This totally changed many people’s perception of the economy. For example, the economic view of the Japanese national government stated in the ... ... [Read more]

No.58
Archives, Economy  Jun. 11, 2020

Post-Coronavirus World: Companies Should Continue to Disperse Production and Procurement

Todo Yasuyuki, Professor, Waseda University Key points: Bringing manufacturing back to Japan comes with risks Don’t fall behind the expansion of global value chains Build strong ties with mutual help with partners abroad The disorder caused by the spread of COVID-19 continues. Nonetheless, we need to look toward the “Post-Coronavirus world” amid this confusion. This paper is a consideration of what supply chains and value chains Japan ought to build in the world after the coronavirus crisis. Value chains refer to networks of economic activities that generate value, including upstream R&D and design as well as downstream marketing and data analysis, and that exist in addition to the supply chains for materials and components. The Japanese government is already taking action. The spread in China disrupted the procurement of parts, components and materials from China. This is why the government is now going to ... ... [Read more]

Blog
Archives, Economy  May. 20, 2020

Challenges in the Post-coronavirus World

Kojima Akira, Member, Board of Trustees, and Adjunct Professor, National Graduate Institute for Policy Studies (GRIPS); Trustee, Chairman of the World Trade Center Tokyo   In mid-April, the International Monetary Fund (IMF) announced a significant downward revision of its growth projection for the world economy in 2020, from the 3.3% it had announced just three months prior, to -3.0%. Nonetheless, the new estimate is based on the assumption that economic activities will normalize after the COVID-19 coronavirus outbreak is contained in the latter half of the year. The IMF has even started to use the term “the Great Lockdown.” Although the quick development of an effective drug is expected, it should be assumed that the coronavirus pandemic may be prolonged or that a second or third wave of the coronavirus outbreak may occur. It is essential to resolutely deal with the current situation for ... ... [Read more]

Blog
Archives, Economy  May. 19, 2020

The Japanese Economy is Facing an Unprecedented Crisis

Komine Takao, Professor, Taisho University   Due to the COVID-19 pandemic, the Japanese economy is facing an unprecedented crisis. It is obvious that the economy has declined significantly, although adequate data is not available. To see how sharply the economy has declined, let’s look at forecasts of real GDP trends. The ESP Forecast Survey (on May 14, 2020) by the Japan Center for Economic Research (JCER) shows that the average of the annualized real GDP growth rate forecasts of leading economists is -4.6% year-on-year for the January-March quarter of 2020 and -21.3% for the April-June quarter. With a negative real GDP growth rate having been recorded in the October-December quarter of 2019, real GDP growth has been in negative territory for three consecutive quarters. A major economic characteristic of the corona shock is that it is the combination of a demand shock, a supply ... ... [Read more]