A new wave of novel coronavirus infections is sweeping Japan, and the daily numbers of newly confirmed COVID-19 cases have broken records.

The Tokyo metropolitan government has raised its alert for medical services to the highest Level 4 based on the number of patients hospitalized and other factors.

Doctors and nurses taking care of severely ill patients, as well as public health workers responsible for tracing infection routes, are sounding the alarm across the nation. The situation demands all-out efforts to contain the spread of infections.

This means the nation needs to brace for tighter restrictions on economic activities, at least over the short term. But the burden should not be placed lopsidedly on specific groups of people.

It is vital to mobilize available social and economic resources to prop up employment and income to improve the chances of restoring the nation’s economic health.

The Bank of Japan’s tankan quarterly survey for December showed business confidence levels among Japanese companies have improved over the past three months but remain low.

The survey indicates many companies are cautious about how much they should spend on plants and equipment or how many new graduates they should hire next spring.

In the “economy watchers” survey conducted at the end of November, when the “third wave” of novel coronavirus infections became evident, the assessment of the current economic conditions worsened among workers who directly serve consumers, such as store owners and taxi drivers.

It was the first deterioration in business sentiment since the index hit bottom in April.

Business confidence dropped particularly among restaurant industry workers, and they were pessimistic about the outlook of the coming months.

After contracting sharply in the April-June period, the Japanese economy recovered about halfway in the July-September quarter. But the economy is still struggling to rebound and is at risk of sinking again.

In a recent monetary policy meeting, the BOJ decided to extend its program to provide funds and help businesses finance their operations by six months until the end of September next year.

Central banks in major Western nations, which have been hit even harder by fresh surges in new COVID-19 cases, have extended or even expanded their already ultra-loose monetary policies.

The priority should be on maintaining the stability of the financial systems to prevent the economy from spiraling downward.

The next challenge is how to strike a balance between measures to stem the spread of infections and efforts to keep the economy from tanking.

The new surge has prompted authorities to request people to avoid traveling, including returning to their hometowns, and dining out with others and calling on restaurants and bars to shorten their business hours. These moves are bound to deliver an additional blow to the restaurant, hotel and transport industries, which have already been battered.

There is no disagreement over the need to enhance financial support for business sales and workers’ incomes lost due to shutdowns or shorter hours.

Moreover, it should be ensured that measures to stop the expansion of infections are solidly in place across all economic activities.

Unlike this spring, when the nation was caught off guard when it was hit by the novel coronavirus, we now know more about what we should or should not do in dealing with this crisis.

To protect the health of customers and front-line workers, infection control guidelines must be strictly followed, while the benefits of digital technology should be used for maximum effects.

Containing the surge would be the shortest path to economic recovery.

Japan’s economic picture is not all bleak, with many industries and companies doing well.

Depending in part on how effective vaccines will be and how fast they will become available, the outlook of the crisis is less murky than it was during the “first wave,” with a view more predictable at the end of the tunnel.

Declines in investment and employment would not only impose an immediate burden on the economy but also blight mid- to long-term growth.

The situation is a sore test of the policymakers’ ability to make effective responses and business managers’ ability to make sound judgments.

--The Asahi Shimbun, Dec. 20