In Japan, wider Covid-19 curbs heighten risk of double-dip recession

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Japan is considering extending a state of emergency from the Tokyo metropolitan area to other regions as coronavirus cases increase, a move that could heighten the risk of a double-dip recession for the world’s third-largest economy, according to Reuters.

Prime Minister Yoshihide Suga conceded that the measures that took effect in the capital region on Friday might also be needed in other parts of the country as infections spread.

The government has resisted calls from some experts for wider curbs beyond those imposed in Tokyo because of the economic pain they would cause.

Analysts and officials have warned the limited, one-month state of emergency targeting Tokyo and neighbouring prefectures could lead to a contraction in economic growth for the current quarter.

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