Japanese Prime Minister Shinzo Abe launches $121bn stimulus package for Japan.
Abe At Play: Japan's Prime minister Shinzo Abe has unveiled a $121bn (¥13.2tn) stimulus package to repair the recent typhoon damage, upgrade infrastructure and invest in new technologies.
Described as a “15-month budget”, the spending package is one of the largest since the 2008-09 financial crisis as Japan seeks to fend off weakness in the global economy, drag from a recent rise in consumption tax and the risk of a slowdown after next summer’s Tokyo Olympics.
The headline figure amounts to approximately 1.9% of Japan’s gross domestic product over 15 months, significantly more than last year’s supplementary budget of ¥3tn, and is expected to boost growth in the economy by about 1.4%. FT
The move comes amid a global move towards looser fiscal policy as governments seek to counter sluggish private demand, taking advantage of their ability to borrow at ultra-low or even negative interest rates.
More on the three-pillared package here.
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