Japan unveiled on Thursday a $ 120 billion package of fiscal measures to help slow down the growth of the world’s third-largest economy, facing offshore risks and policymakers seeking to keep the activity beyond the 2020 Tokyo Olympic.
Prime Minister Shinzo Abe announced in the gathering of ruling party lawmakers and government officials that 13 trillion yen ($119.7 billion) package, the size of which had been reported previously. It’s based on three pillars of ensuring disaster rebuilding and safety, providing intensive support to overcome downside economic risks and sustaining economic vitality after the Tokyo Olympics.
The government is expected to announce further details of the package later in the day after the cabinet has approved it. Sources told Reuters this week that the economic package amounts to 25 trillion yen ($ 230 billion), including government loans, credit guarantees, and private sector spending.
The economy of Japan nearly halted in July-September as the global slowdown dampened exports. Retail sales also fell at their fastest pace in more than four-and-a-half years in October, as an increase in the sales tax prompted buyers to tighten their strings.
The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan programs, as the heavily indebted government seeks to take advantage of low borrowing costs under the central bank’s negative interest rate policy.
The spending will spread over a supplementary budget for this fiscal year to March and an annual budget for the coming fiscal year from April, both to be compiled later this month.
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