Will Japan’s Economy Buckle Under the Coronavirus Outbreak?

Japanese companies are bracing for a slowdown in supply chains and sales.

Last week, the Chinese Lunar New Year period wrapped up with hopes that business would return to normal operations amid an outbreak of a novel strain of coronavirus that has sickened nearly 60,000 in China. But in Japan manufacturers are struggling to secure parts and normalize production lines as Chinese factories delay reopening after the holidays.
A special task force compiled emergency measures to support small- and medium-sized local businesses such as hotels and inns, which are facing mass cancellations.
Financing worth approximately $4.5 billion will be taken from reserve funds for the current fiscal year. Retail chain Muji suspended operations at its 17 stores located in Wuhan in response to instructions from Chinese authorities.
On the other hand, at the request of Chinese authorities the Japanese supermarket chain Aeon continues to operate its five grocery stores.

This article was written by THISANKA SIRIPALA

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