The good news for Japan is that the virus cases are starting to flatten out over the past two weeks. There is now a little over 12,000 active cases across the country as of yesterday, and that is down from the peak of around ~16,300 on 13 August.
That said, the number of tests conducted – in Tokyo at least – have also sort of plateaued as well but it could also mean that less hot spots are being identified.
As for the government’s focus on the economy over the health crisis in general, that is not a surprising take after how the virus situation has unfolded since July. They would want to avoid another state of emergency as it would have a big negative impact on the economy