JAPAN DECLARES EMERGENCY, UNVEILS RECORD RELIEF PACKAGE

TOKYO: Japan unveiled a record 108.2 trillion yen ($992 billion) stimulus package to shield the economy from the coronavirus’ widening as Prime Minister Shinzo Abe declared a state of emergency.

The package’s size, with a headline figure equivalent to 20% of the nation’s annual economic output, highlights the magnitude of the damage that policy makers are bracing for. Japan’s economy faces its biggest crisis since the end of the second World War, Abe told reporters on Tuesday.

Abe earlier declared a state of emergency for Tokyo, Osaka and five other prefectures, empowering local authorities to urge people to stay at home in major cities that generate about half of Japan’s economic output.

Japan i s r amping up i t s response to the outbreak amid mounting calls for more aggressive measures to contain the deadly virus and its economic consequences. Infection numbers have jumped in recent days, growing to about 4,000 from less than 400 a month ago and sparking concern Japan is headed for a crisis like the ones roiling the US and parts of Europe.

Prime Minister Abe said that experts’ calculations show the virus’ spread will peak out in two weeks, as long as people reduce contact with each other by at least 70% or 80%.

Essential public services will continue to operate as normal and business won’t be forced to close, but the key is for people to change their behaviour, he said.