Coronavirus May Impact Japan’s Economy, Says Minister

Coronavirus May Impact Japan’s Economy

The unexpected break-out of coronavirus in China and its continuing expansion could impact the local and global economy.

Japan’s Economy Minister forecasts corporate earnings and factory output to be negatively impacted by the virus.

While major indexes decline across the board, Bitcoin and gold keep moving up.

Yasutoshi Nishimura said the coronavirus poses serious threats to global economy, adding that this epidemic would weigh on Japan’s economy, especially when it comes to tourism. Chinese tourists account for 30 percent of Japan’s visitors. Accordingly, travel delays and cancelations are among the minister’s main concerns.

Nishimura said:

“If the situation takes longer to subside, we’re concerned it could hurt Japanese exports, output, and corporate profits via the impact on Chinese consumption and production.”

Japan’s GDP growth may decline by 0.2 percent on potential fall in Chinese tourists, said Hideo Kumano, chief economist at Dai-ichi Institute.

He is also worried that this could effect the upcoming 2020 Olympic Games in Tokyo.

There are several premier car makers such as Nissan and Honda working at Wuhan; virus’ epicenter. Nissan plans to relocate workers from the city, while Honda is already evacuating them.

Over the last few days, Gold rose 1.28 percent, and the biggest cryptocurrency climbed over 8 percent.

In a smooth progress to adopt a digital currency, the People’s Bank of China (PBoC) has completed the “top-level” design of its new digital currency dubbed as Digital Currency Electronic Payment “DCEP”.

In a recent paper, the central bank said, “The top-level design, standard formulation, functional research and development have been completed.”

The bank earlier said work on the state-backed digital currency is progressing smoothly. “We will continue to steadily advance the development of legal digital currencies in 2020.”

Blockchain technology is widely used in China, thanks to President Xi Jinping’s support to the technology.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.