Trying Times For Japan

JAPAN

Trying Times

Established in 1160, Tsuen Tea in Kyoto is perhaps the oldest continually operating tea house in the world. The shop was in a fascinating BBC story that discussed how more than half of humanity’s oldest businesses are in Japan. The story mentioned a hotel that opened its doors in 705 and a candy maker that’s more than 1,000 years old.

Presumably some of those businesses have been through rocky times. They should prepare for more. The world’s third-largest economy is facing big challenges.

Japan’s economy shrank by 1.6 percent last quarter, reported CNN, and some economists warn that a recession appears likely. That’s despite a $120 billion stimulus plan unveiled in December.

The decline occurred as Japan was struggling to address its demographic dilemma. The island nation’s aging population requires costlier and costlier services that have necessitated tax hikes that have potentially hit consumer spending.

“I’m going to stop eating in at convenience stores,” a 20-year-old male student told Nikkei Asian Review, noting that food consumed at convenience store lunch counters would be taxed at 10 percent while items taken out would incur 8 percent in tax. “This was one of the few moments I could relax between school and work, so I’m disappointed.”

Now that student has another reason not to eat out: the new coronavirus. More than 2,500 people have lost their lives in China due to the virus, Al Jazeera reported.

Most of the 400 cases of the virus in Japan were among people on the Diamond Princess, a cruise ship docked in Yokohama. American officials recently evacuated US citizens from the vessel. But other cases have been documented, like the Japanese couple who tested positive for the deadly virus after they took a commercial flight to Hawaii, as KHON2, a Hawaiian television news station, reported.

“The widening fallout from the epidemic, which is damaging output and tourism, could have a significant impact on Japan if it’s not contained in coming months,” wrote Reuters.

Authorities are taking public health measures to limit crowds where people might spread the sickness. Emperor Naruhito canceled his birthday celebrations. The Tokyo Marathon was closed to spectators. Each event had been expected to attract tens of thousands. Large companies have asked employees to work from home.

Japanese officials are working overtime to get a handle on the virus because they are also preparing for the Tokyo Olympics in a few months, an event that is sure to give the economy a much-needed shot in the arm. The games will go on, organizers said. They don’t have a Plan B, the New York Post reported.

Someone is going to make a lot of money selling face masks.

W