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A monthlong state of emergency planned by the government to contain a resurgence of novel coronavirus infections is expected to knock trillions of yen off private consumption, with some economists predicting the economy will return to contraction.

The expected economic impact of a state of emergency in Tokyo and three neighboring prefectures, which the government of Prime Minister Yoshihide Suga is considering declaring on Thursday, will likely be smaller than those seen after the first emergency declaration in April last year in Tokyo and six prefectures.

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