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Japan’s Recession Fears Deepen With Half Economy in Emergency

  • Analysts see output shrinking by up to 20% as rules tighten
  • Abe looks to rescue economy with nearly $1 trillion stimulus
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Abe to Declare Japan Emergency
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Half of Japan’s economy is set to enter a state of emergency as the government strengthens its response to the coronavirus, deepening fears that output will plunge by as much as 20% in the current quarter.

Prime Minister Shinzo Abe will make an emergency declaration for Tokyo, Osaka and five other prefectures as early as Tuesday, empowering local authorities to urge people stay at home for one month. He will also unveil details of a record stimulus package worth close to $1 trillion as he tries to stop the economy entering free fall.