Reuters Corporate Survey, major points:
- 53% of Japanese firms see the economy recovering to pre-pandemic levels by end-FY2022, 48% see econ reaching such levels in FY2023 or later
- 80% of firms say covid pain will fade away by end-FY2022, 20% see covid impact to last beyond FY2022
- half of Japan firms hit by chip shortage; 44% see it resolved in FY2022, 16% say it will persist beyond FY2022, 10% cannot foresee when it will be resolved
(Note - In Japan, the financial year is from 1 April to 31 March)
Some of the commentary:
- "There will be a repeat of the vicious circle of variants and resurgence," a manager of a ceramics maker wrote in the survey on condition of anonymity. "It will take time to contain the pandemic thoroughly."
- "Spreading infections and lockdown in Southeast Asia have cut supply-chain of parts," a machinery maker manager wrote.
- "Lockdown in Malaysia was a factor behind chip shortages," a transport equipment maker manager wrote.
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That a repeat of the vicious circle of variants and resurgence is unfortunately all too likely. There is still a huge surge in new infections around the globe, this increases the likelihood of new variants emerging and so the circle will carry on until vaccination is more widespread geographically.
