2nd state of emergency likely to cut Japan's GDP

Analysts in Japan say the country's economy will shrink by up to 0.9 percent annually, if a state of emergency is declared for Tokyo and surrounding prefectures.

The estimates from 5 private-sector firms, range from a 0.3 percent decline in GDP to a 0.88 percent contraction. That's assuming the emergency measures last for a month.

The analysts say consumer spending would plunge as people would be urged to stay at home as much as possible. And restaurants would have to cut their opening hours.

The Dai-ichi Life Research Institute is predicting the loss of 75,000 jobs over the six months following the emergency declaration.

Nomura Securities, Nomura Research Institute, and Daiwa Institute of Research all say there's a strong possibility the economy will shrink during the first three months of this year.