Japan's economy faces extreme uncertainty as coronavirus spreads: Central bank head

Tokyo

Uncertainty over Japan’s economic outlook is “extremely high” as the coronavirus pandemic hits output and consumption, central bank Governor Haruhiko Kuroda said.

He stressed his readiness to take additional monetary steps to prevent a deep recession.

While aggressive central bank actions across the globe have eased financial market tensions somewhat, corporate funding strains were worsening, Kuroda told a quarterly meeting of the Bank of Japan’s regional branch managers on Thursday.

“The spread of the coronavirus is having a severe impact on Japan’s economy through declines in exports, output, demand from overseas tourists and private consumption,” he said, quoted by Reuters.

Japan recorded 503 new coronavirus infections on Wednesday - its biggest daily increase since the start of the pandemic - as a state of emergency took effect giving governors stronger legal authority to urge people to stay home and businesses to close.