First COVID variant confirmed in Japan stirs economic downturn

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First COVID variant confirmed in Japan stirs economic downturn

The confirmation of the first case of the new Omicron variant of the coronavirus in Japan has rekindled anxiety among businesses over an economic downturn, as the threat of restrictions is close to the end of the day.

Koichiro Sakaue, 51, director of the agricultural production company Sakaue in Kagoshima Prefecture, said his farm has already been suffering from a labor shortage due to existing border restrictions.

If they become even stricter, technical trainees from Vietnam won't be able to enter Japan again, he said.

Concerns over the variant have caused a number of countries to tighten travel restrictions, with Japan closing its borders to foreigners from Tuesday and requiring citizens and foreigners with resident status return from high-risk areas to spend up to 10 days of their 14 day isolation period in a government-designated facility.

Major companies have had to cancel overseas business trips because of the new rules, with SoftBank Corp. suspending travel abroad from December 1.

Masayoshi Matsumoto, chairman of the Kansai Economic Federation, had planned to attend Expo 2020 Dubai's Japan Day on December 11 to promote the 2025 World Expo in Osaka but has decided not to make the trip.

Dining establishments are wary of the COVID 19 restrictions being imposed on social activities.

An official at Gourmet Kineya Restaurant Co., who operates udon and soba noodle eateries in the country, said sales have been returning to pre-coronavirus levels since the COVID 19 restrictions were fully lifted at the end of September.

The official said that things would get hard if restrictions are imposed on economic activities.

Fukuoka-based ramen noodle chain Ichiran said it would consider putting measures in place if requested and had previously cooperated with the government by suspending serving alcoholic beverages.

Yuichi Kodama, chief economist at Meiji Yasuda Research Institute, said that businesses had been expecting people to eat out and travel more to make up for lost time, but the arrival of the Omicron variant could lead to a return to self-restraint. If consumer spending continues to be sluggish, a slowdown in economic recovery will be inevitable, he said.