(Bloomberg) -- Japanese Prime Minister Yoshihide Suga is set to declare a state of emergency Thursday for Tokyo and adjacent areas, seeking to stem coronavirus infections that are hitting record highs.
The declaration will cover the capital and the surrounding prefectures of Kanagawa, Saitama and Chiba, and is likely to take effect from Friday, according to Kyodo News and other domestic media reports.
Kyodo said the measure could last one month, but the duration is unclear after the Nikkei newspaper reported that the government will lay out criteria to be met before it is revoked.
Japan’s emergency doesn’t imply the kind of lockdowns seen in some parts of Europe. The step would hand power to local governments to urge residents to stay home and order some businesses to close or limit operations. Authorities can’t enforce compliance for now, although Suga is seeking to amend the law to add penalties and incentives for businesses.
Bloomberg Economics’ Yuki Masujima sees the emergency declaration shaving up to 0.7% off the economy for each month it lasts. Tokyo and neighboring areas account for about one-third of the country’s gross domestic product, which would make it the world’s 11th largest economy.
Ballooning infections have been a blow for Suga, who had emphasized keeping the economy ticking despite the pandemic, including by offering domestic travel incentives to bolster the tourism industry. His public support has slumped as voters have faulted his pandemic management.
The decision is likely to emerge after a day of formal consultations. It would be the second in Japan after a declaration that began in April, but is not expected to cause as much pain as the first, when the virus slammed the brakes on the economy and sent it into its worst downturn on record.
Suga said on Monday he wanted the emergency measures to be focused and limited, by contrast with the broader steps taken last time. He said the aim would be to reduce spreads stemming from bars and restaurants, which he cited as among the main sites for infection.
Suga’s signature “Go To” travel campaign, which had already been suspended through Jan. 11, is unlikely to be revived while the state of emergency is in place. Schools, however, will not be asked to close and university entrance exams will go ahead as scheduled.
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