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Japan consumers cling to 'COVID savings' as anxiety grips country

Weak 'revenge consumption' compared with U.S. reflected in sluggish economy

For Japan, the focus will be whether consumers start using money saved during the height of the pandemic, as what happened in the U.S.    © Reuters

TOKYO -- People in Japan are hoarding the cash they accrued during the pandemic despite an easing of restrictions, with savings actually increasing to 62 trillion yen ($478 billion), or more than 10% of the country's gross national product.

The trend appears to reflect a general feeling of insecurity among consumers about the future -- a mood in stark contrast with the U.S., which saw savings plummet 60% from its pandemic peak.

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