Japan sees a second consecutive rise in its retail sales. This rise is much quicker than anticipated in November. The decline in COVID-19 cases throughout November helped to boost consumers' spending more on products and services. Official statistics published today show that there was a 1.9% rise in November when put side-by-side with this time in 2020.
To help the country, the Japanese government passed a $940 billion budget for fiscal 2022 on Friday. This is to cover monetary payments to households and companies affected by the pandemic.
Initially, the Omicron variant that began affecting the major Japanese communities and towns last week casts doubt on the prospects of a quick recovery in the consumption sector. However, according to the Dai-ichi Life Research Institute’s Masato Koike, consumers have not paid much attention to the Omicron variant. This can be seen as pedestrians keep trooping out in numbers.
There Will Be No Additional COVID-19 Restrictions Except for a Sudden Rise in Infection Rates
As for restrictions, the administration announced on Thursday that there would be no urgent adjustments to the COVID-19 regulations within the country. However, in the event of a surge of fresh cases, there is a chance, at this time, that consumption will be curtailed by the Omicron. Koike also adds that returning vacation travelers might transmit viruses.
Meanwhile, gasoline sales increased 29.2% this year in November, owing to rising commodity costs, which pumped the total retail trend. Sales of automobiles plummeted 14.1% due to supply constraints, while the sale of electronics also fell to 10.6% due to dwindling demand for home equipment. Seasonally adjusted market sales rose by 1.2% in November over October, following a declining revised 1% rise in October.
Following September’s removal of restrictions by Japan, daily COVID-19 infection incidents in the country plummeted to below one per million individuals early in December.
Aside from the stringent restrictions at the border to prevent the further entry of the Omicron strain, no other controls have been reintroduced. Reuters' recent survey of experts, reveals that Japan’s economy is anticipated to bounce upward by an annualized 6.1% in this current quarter, accompanying a 3.6% drop in July to September.
The Japanese yen is set to go up with the economic boost.
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