The world economy has significantly changed since the beginning of COVID-19. After a bit of recovery, the new COVID variant Omicron made the world governments start lockdowns again, meaning that the economy is still struggling. However, Japan still managed to avoid the severe financial crisis and recovered its economy.
The Japanese government has raised its monthly outlook for the economy for the first time since the summer of 2020. It shows that it is confident in the economic recovery even when the Omicron variant of the coronavirus is at risk.
The Cabinet Office stated in its December report that as the severe situation caused by the pandemic has gradually eased, the economy has recently rebounded. The government raised its views on consumption, business confidence, and the job market regarding individual components.
The report highlights how Japan has avoided the rapid spread of Omicron in the United States and the United Kingdom. In the United States, this variant accounted for 73% of new cases last week, while the total number of confirmed Omicron cases in Japan was less than 70 as of the end of last week.
The Cabinet Office stated that it should pay attention to the new variants. However, it added that it still believes that the economy will pick up in the short term. It said that supportive government policies and the progress made in returning to everyday life in the country should help.
After the summer COVID-19 wave triggered another emergency and dragged down consumption, Japan should rebound this quarter. Since then, restrictions have been released. Moreover, Japanese Prime Minister Fumio Kishida announced a larger-than-expected stimulus plan to boost the economy.