TOKYO: The Japanese government’s decision to extend its coronavirus state of emergency for the Tokyo metropolitan area for two weeks is projected to push down personal consumption by 700 billion yen ($6 billion), an economist said.

Takahide Kiuchi, executive economist at Nomura Research Institute Ltd., said Japan’s gross domestic product in 2021 is expected to fall 1.1 percent due to the emergency, which has been in place since January.

“Continued sluggish consumption will trigger bankruptcies, possibly leaving many people jobless,” Kiuchi said.

Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute Inc., said that the number of unemployed people tends to rise six months after economic growth slows.

The number of jobless people is expected to increase by 173,000 over the next six months due to the extended emergency, up from the initial estimate for an increase of 151,000, Nagahama said.

Nagahama said the government needs to keep its employment adjustment subsidy program, which provides financial aid to businesses maintaining employment, in place in an extended period.

A wide range of support, including for restaurants and bars operating with shorter hours at the request of the government, is necessary, he said.

An increasing number of ruling coalition lawmakers have been calling for additional stimulus measures from the government. At a press conference on Friday, Prime Minister Yoshihide Suga said the government will keep as much financial assistance as possible in place.