Japan is removing travel restrictions and today expanding daily border mobility for international travelers from 106 countries. The move seeks
Japan is removing travel restrictions and today expanding daily border mobility for international travelers from 106 countries.
The move is aimed at bolstering the recovery from the economic downturn in Japan’s service sector and educational institutions, which are heavily dependent on foreign funding. Japan’s strict COVID restrictions at the borders have curtailed foreign business operations and investments, driving 40,000 businesses out of business. The reopening of borders today indicates Japan’s willingness to encourage foreign businesses to resume operations. Additionally, Japan is increasing the daily entry permit to 10,000 international students to boost the education sector.
Japan is likely to embark on a slow economic recovery in hopes that foreign investment will return to pre-pandemic levels. Foreign companies, however, may be hesitant about the risks of changing border restrictions. However, Japan could change its trade policies to improve the ease of doing business for these companies. Expect Tosho to restructure its operations to attract foreign investment. Japan is the latest G7 country to open its borders. The expected economic growth for fiscal 2022, 2.2%, is Japan’s weakest since 2019 and the resumption of activities will help Japan reinvigorate its economy.
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