Japan bracing itself for crisis worse than 2008 as cases rise

TOKYO • The number of coronavirus infections in Japan rose to 1,484 yesterday, increasing by a faster pace than the previous day, public broadcaster NHK reported, as Economy Minister Yasutoshi Nishimura said the effect of the pandemic on the economy could be worse than the 2008 financial crisis.

Cases increased by 41 yesterday, up from the previous day's 21.

The total number of infections includes 697 from the Diamond Princess cruise ship and 14 returnees on charter flights from China, according to NHK data.

Deaths in the country related to the virus stood at 29, up one from the previous day. The deaths include seven from the cruise ship.

Speaking on Fuji Television, Mr Nishimura called for strong measures to protect the economy, and said proper consideration should be given to whether reducing sales tax would bolster consumption.

Japan's economy was already teetering on the brink of recession when the effect of the virus began to kick in, partly due to an increase in sales tax to 10 per cent in October from the previous 8 per cent.

Some have called for the increase to be reversed to help encourage consumption.

"This may be on a par with the Lehman shock, or even worse," Mr Nishimura said. "We need measures on the same scale, they should be bold and not limited by what's been done before."

REUTERS, BLOOMBERG