Lockdown set to loosen in some regions

The government confirmed this week that the nationwide state of emergency will be extended until 31^st May. But with daily cases slowing, some local authorities have signalled they are considering relaxing restrictions before then. Indeed, there was already a small pick up in activity in the north of the country during the Golden Week holiday. However, those regions account for a small slice of GDP. Consumer spending is set to remain extremely weak in the government’s “special alert” prefectures which account for the bulk of Japan’s economic activity.