Yoshihide Suga, the outgoing Japanese prime minister, is set to lift the country's state-of-emergency status on Wednesday, after more than two months of strict prohibitions which covered the 2020 Tokyo Olympics and Paralympic Games.

The easing of pandemic measures will also include 18 prefectures as well as the quasi-state of emergency in other areas as Japan's COVID-19 cases have dropped from their peak.

"The number of new infections and patients with severe sickness have dramatically declined," Japanese news agency Kyodo News quoted Suga as saying during a panel meeting at the House of Representatives.

But some limitations on food establishments and big events would remain in place for around a month to prevent a resurgence in coronavirus cases, Japanese Economy Minister Yasutoshi Nishimura said.

"New infections will undoubtedly increase after the emergency state is lifted," Nishimura, who is also in charge of the country's pandemic response, said on Tuesday.

Under a state of emergency, people are urged to refrain from non-essential travel and other movements, and avoid going to crowded places, while bars and restaurants are asked to close by 8 p.m. and not serve alcoholic beverages.

COVID-19 infections surged in Japan on August 24 when an excess of 24,000 cases were reported, with the increase blamed on the highly transmissible Delta variant.

Local government officials plan on lifting restrictions in phases with governors of each prefecture deciding on which pandemic measures should remain in place and what should be lifted.

Infections across the country have been declining since reaching a record of 25,875 cases on August 20. Health officials confirmed a total of 1,145 infections Monday, with cases in the capital city of Tokyo dropping below 200 for the first time since March.

Almost 60% of Japan's population are fully immunized from the virus, and officials have said all those who want to be vaccinated can do so by November.

"The situation has certainly taken a turn for the better," the prime minister said after returning to Japan from the U.S., Kyodo reported.

The decision to lift Japan's state of emergency was made a day before the ruling Liberal Democratic Party (LDP) will vote for a new leader to succeed Suga, who announced he will quit his post earlier this month.