Japan’s Post-Covid Spending Likely to Help Economic Recovery

Japan is helping its post-Covid economic recovery with a further easing of virus-related restrictions, a move that’s expected to aid a growth trajectory that has been slower than its peers.

Following a string of national holidays in early May, Japan lowered its classification of Covid-19 to the same level as seasonal flu on Monday. The shift, flagged at the beginning of the year, will boost the economy by as much as 4.2 trillion yen ($31.2 billion) or around 0.75% of gross domestic product, according to Hideo Kumano, executive economist at Dai-Ichi Life Research Institute.