A senior International Monetary Fund official warned Japan against the danger of continuing and expanding the spread of the Corona virus, as it would harm the Japanese economy through its impact on tourism, retail trade and exports among other sectors. .
According to ArabiaNet, Paul Kachin, head of the International Monetary Fund’s mission to Japan, stated that the spread of the Coruna virus poses an urgent downward threat to Japan’s economy, but the economic impact will depend on the extent of the disease and the political response.
He added, in an interview with Reuters, if it is long-term and expanded, this will likely affect tourism and retail activities in Japan through a decline in the number of tourists and spending from China and others.
Kachin said that the outbreak could also affect trade and investment, as any new slowdown in China’s economy may affect Japanese companies ’production and disrupt supply chains.
Kachin did not give an estimate of the impact of the virus outbreak on growth in Japan, saying the impact would be taken into account in the upcoming IMF update of its global forecasts in April.
The virus, which started in China and has spread to 27 countries and regions, has increased fears among Japanese policymakers that the world's third largest economy, already affected by declining global demand and personal consumption, may decline to shrinkage.
Japanese automakers are producing components and retailers selling a wide range of goods to China, Japan's second largest export destination.
The Corona virus outbreak is also a blow to shopping malls and hotels in Japan, as the Chinese accounted for 30% of the total tourists visiting Japan and nearly 40% of the total spending of foreign tourists last year, according to a survey of the sector.
