Japan cuts economic outlook for first time in 10 months

TOKYO: Japan’s government cut its view on the overall economy in February for the first time since April last year as an extended state of emergency to curb coronavirus infections battered consumer spending.

Analysts expect the world’s third largest economy to shrink in the current quarter as renewed restrictions rolled out in Tokyo and some prefectures last month to contain the pandemic damage businesses and household spending.

“The economy shows some weakness though it continued picking up amid severe conditions due to the coronavirus,” said the economic report.

Japan’s economy grew for a second straight quarter in October-december, extending the recovery from its worst post-war recession earlier last year. But new state of emergency measures cloud the outlook, underscoring the challenge policymakers face in preventing the spread of Covid-19. The government estimates the economy will expand 4% in the next fiscal year starting in April.

Nearly 100 cases of new Covid-19 strain found

Japan has detected a new variant of Covid-19, presenting a fresh challenge as the country tries to overcome a third wave of the pandemic. The new variant was found in 91 cases in the Kanto area of eastern Japan and in two cases at airports, officials said on Friday.