Japan’s PM announces USD708B in fresh stimulus

TOKYO (CNA) – Japan will compile a fresh economic stimulus package worth JPY73.6 trillion (USD708 billion), Prime Minister Yoshihide Suga said yesterday, signalling his resolve to pull the country out of its coronavirus crisis-induced slump.

The new stimulus package will include fiscal spending worth around JPY40 trillion, Suga said in a meeting with ruling party executives.

The government finalised the stimulus package yesterday, which would follow a combined USD2.2 trillion from two previous packages focussed on dealing with the immediate strain on households and business. The new economic measures would help push “new economic growth”, Suga said at the meeting.

The package is likely to include subsidies and incentives to prod companies to boost green investment and spending on digitalisation, an area Suga has laid out as his key policy priorities.

Japan’s economy rebounded in July-September from its worst postwar contraction in the second quarter, though many analysts expect a third wave of COVID-19 infections to keep any recovery modest.

Men wearing face masks walk past a restaurant in Osaka, western Japan. PHOTO: AP