- Saturday 22 Feb 2020
Japan unveils USD 120 billion stimulus package
PTI, Dec 5, 2019, 4:05 PM IST
Tokyo: Japanese Prime Minister Shinzo Abe unveiled USD 120 billion in stimulus measures on Thursday, to help the world’s third-largest economy overcome the aftermath of recent natural disasters.
The package is also aimed at helping alleviate the impact of a recent tax hike and survive a potential economic slowdown after a spending boom for the 2020 Tokyo Olympics.
“We will introduce a daring fiscal policy worth 13 trillion yen (USD 120 billion),” Abe told ministers and party leaders at the prime minister’s office.
“We have crafted a powerful policy package,” Abe added.
Under the plan, the government will spend some six trillion yen on a public investment after a series of natural disasters — including killer Typhoon Hagibis — caused huge damage to infrastructure, local media said.
Japan’s economy has so far expanded this year, partially because of strong demand related to preparations for the Olympics, which will start in July. Some analysts warned the country may suffer a post-Olympic slump.
The package is also aimed at easing the impact of the increase in consumption tax from eight percent to 10 percent, which came into effect on October 1, and helping Japanese firms prepare for a global economic slowdown due to the US-China trade dispute.
The Tokyo market welcomed the package, with the Nikkei index up 0.71 percent and the broader Topix climbing 0.48 percent.
“In particular, stimulus-related shares such as construction companies benefited from the announcement,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.
But Yusuke Shimoda, an economist at Japan Research Institute, warned the impact of the package could be “limited.” “The package is likely to boost infrastructure-related businesses, but is unlikely to help reform the nation’s slow-growth economy fundamentally,” Shimoda said.
The package will also include government measures to help expand exports of farm products as a trade accord between Tokyo and Washington is set to take effect next year, Kyodo News said.
Among other steps, the government will help people in their 30s and 40s, who have been struggling to find work due to past economic slowdowns, to land new jobs, it said.
New Delhi: The US-India Business Council on Friday said it has appointed Vijay Advani as new Chair of its Global Board of Directors. Advani has tak....
Sydney: An Australian boy with dwarfism who was bullied to the point he wanted to "die right now" has received a deluge of celebrity messages and dona....
Washington: The United States on Friday said it was unlikely that a trade deal would be inked with India during President Donald Trump's upcoming visi....
Washington: US President Donald Trump is encouraging a cooling of tension between India and Pakistan, the White House said on Friday, pointing out tha....
Tokyo: The condition of eight Indians, who were on board the cruise ship off the Japanese coast and undergoing treatment for the deadly coronavirus, i....
Mangaluru: The organisers of an anti-CAA rally, Muslim Aikyatha Vedike, have reprinted their invitation without the name of the girl who shouted Pakis....
Udupi: Udupi-Chikkamagaluru MP Shobha Karandlaje on Friday slammed Congress leader D K Shivakumar for saying that anti CAA activist Amulya, who raised....
Hubballi: A separate police team has been constituted by the district police to look into the sedition case filed against three Kashmiri students. ....
Belagavi: In a show of communal amity, a madrassa in Belagavi hosted the mass marriage of 76 Muslim and 25 Hindu couples on Friday, February 21. Ma....
Sonbhadra (UP): The Geological Survey of India (GSI) has discovered gold deposits estimated to be around 3,000 tonnes and worth Rs 12 lakh crore in So....