Japan's new PM should focus on response to coronavirus - Reuters Poll

Japan's new Prime Minister (PM) should focus on combating coronavirus, building a digital economy, and creating employment; a Reuters poll showed on Friday.

Key points

The median forecast of 30 analysts showed Japan's economy is expected to contract 6.0% this fiscal year, the biggest contraction since comparable data became available in 1994 and worse than the 5.6% fall projected last month.

37 economists said the new government should focus on combating pandemic while 28 wanted the government to digitalize society and firms.

Nearly two-thirds of the economists said that the Bank of Japan's next course of action would be to expand its stimulus. 

The Liberal Democrat Party (LDP) will hold its leadership election on Sept. 14. Some investment banks do not expect the new PM to make big changes to outgoing PM Shinzo Abe's stimulus. 

Also read: New Japanese PM unlikely to add to existing stimulus - ANZ