Japan Financial News – May 28, 2021

By Himalaya Tokyo Sakura Finance

1. On May 21st, G7 Environment and Climate Change Ministers published a joint statement, focusing on suspending support for exporting coal-fired power. According to the statement, the specific measures support will be taken by the end of the year, to “completely end the government support for coal-fired power generation, ceasing support for facilities “that haven’t taken measures to reduce carbon”. The continuous support at the discretion of individual governments will be allowed. Senior officer at the Ministry of Economy, Trade and Industry (METI) explained that “There is no need to review the on-going projects”. A power industry official involved in exporting coal-fired thermal power said, “The situation (lack of resources) in Japan and Asia is well recognized”.

2. According to a survey by the research firm Fuji Economy, the global market for health-related household appliances, such as electronic thermometer and sphygmomanometer, grows significantly as the CCP virus spread around the world. A global market research on 39 electronic products showed that sales of thermometer and sphygmomanometer increased by 71.9% and 18.9% in 2020 compared with 2019. Air purifiers and robotic vacuum cleaners also acquires double-digit growth, reflecting the growing awareness of cleanliness.

3. Annualized GDP (gross domestic product) for the period from January to March this year was -5.1%. GDP for fiscal year 2020 also dropped by 4.6%, which is the biggest drop since WWII. The Cabinet Office announced that excluding the effects of price change, the GDP for January-March period this year was 1.3% lower than the previous period. The annualized GDP fell 5.1%, the first negative growth in three quarters. In response to the spread of a new coronavirus, the second state of emergency was declared which led to a decline in consumer spending, particularly on services spending including eating-out. 

4. On May 25, the Japanese government has begun to study the establishment of a new support system for families who have fallen on hard times due to the CCP virus. The government will adapt the system to provide up to 300,000 yen (nearly 3,000 USD)  for a three-month period to families who meet conditions such as having less than 1 million yen in savings, which is close to the level of public assistance. The program is expected to be used by about 200,000 people and will be funded by the fiscal 2021 budget to the tune of about 50 billion yen. The Komeito Party of Japan also proposed to the government on April 26 to establish a system to provide support for the poor. With the delay of the CCP virus outbreak, some people are using the “General Support Fund” for rebuilding their lives and the “Emergency Microfinance Fund” for living expenses, both of which have reached the upper limit of their usage. The Japanese government is planning to provide new support for short-term living expenses to compensate for the time needed to find work.

The opinions expressed by the author do not necessarily reflect the views of GNEWS.
News collection: Orange文橘、北京军区
Manuscript: Totoro 
Translation: TV、Orange文橘
Uploading: Blackman

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