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Staff of Reuters 2 minutes On January 16, 2017, a factory area is seen in front of Mount Fuji in Yokohama, Japan. Kim Kyung-Hoon/Reuters TOKYO, Japan (Reuters) – The top government spokesman said on Sunday that Japan is ready to inject more money into the economy to lessen the pain of a prolonged pandemic, alluding to mounting political requests for further stimulus to boost growth. Tokyo enters its fourth COVID-19 state of emergency from Monday to Aug. 22, less than two weeks before hosting the Olympics, fueling fears of longer suffering for restaurants impacted by lower hours and a restriction on alcohol drinking. “First and foremost, we must proceed with anti-infection measures and immunization in collaboration with residents, as well as providing support for enterprises and people in need,” Chief Cabinet Secretary Katsunobu Kato said on NHK’s debating show. “Then, without hesitation, we intend to take economic measures,” Kato added, without specifying the quantity or timing of any stimulus measures. Prime Minister Yoshihide Suga’s Liberal Democratic Party lawmakers have stepped up efforts for a fresh aid package, with party heavyweight Toshihiro Nikai claiming that an additional budget of roughly 30 trillion yen ($270 billion) is required. The world’s third-largest economy is anticipated to recover from a 3.9 percent annualized decline in the first quarter, but economists expect a slow recovery, with service sector demand being particularly sluggish. Government expenditure is restrained by public debt, which is 2.5 times Japan’s yearly economic output – the world’s highest debt burden, exacerbated by enormous stimulus packages implemented over the past year. Suga, who must call a general election later this year, said on Thursday that the administration wants to focus on corporate finance, employment, and restaurants, and deliver as soon as feasible. He stated that the government would respond flexibly because he was addressing the coronavirus’s economic impact with an economic package in mind. Tetsushi Kajimoto and Leika Kihara contributed reporting, while William Mallard edited the piece./nRead More

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