Japan removes travel restrictions and expands the daily border mobility of international travelers from 106 countries today. The move seeks
Japan removes travel restrictions and expands the daily border mobility of international travelers from 106 countries today.
The move seeks to bolster the recovery after the economic slowdown experienced by Japan’s service sector and educational institutions, which rely heavily upon foreign funding. Japan’s strict COVID restrictions on borders curtailed operations and investments by foreign firms leading 40,000 companies to go bankrupt. Today’s re-opening of borders indicates Japan’s willingness to encourage foreign firms to commence business again. Additionally, Japan is increasing the daily permit of entry to 10,000 international students to stimulate the education sector.
Japan will now likely begin a slow economic recovery with hopes that foreign investments will return to pre-pandemic levels. Foreign firms, however, may be hesitant about the risks involved with the change in border restrictions. However, Japan might modify its trade policies to improve the ease of doing business for these firms. Expect Tosho to restructure its operations to entice foreign investments. Japan is the last country in the G7 to open its borders. The expected economic growth for fiscal year 2022, 2.2%, is Japan’s lowest since 2019 and resuming business again will help Japan reinvigorate its economy.
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