Japan govt’s new economic stimulus likely to amount 73 trillion yen

Prime Minister Yoshihide Suga said that the size of a new stimulus package to restore the economy, maintain employment and sustain business activity would be finalised this week.

The Japanese government is likely to decide on new economic measures totalling roughly 73 trillion yen ($700 billion) on Tuesday, NHK public television reported on Monday.

Despite some signs of improvement in recent months, analysts expect Japan’s economy to shrink 5.6% in the current fiscal year ending in March 2021 and say it could take years to return to pre-coronavirus levels. (AP file photo)

The economic measures will include steps aimed at preventing the spread of the novel coronavirus and others focused on shifting towards building a post-pandemic economy, NHK added.

Later, NHK said that the general account of a third supplementary budget for the fiscal year ending on March 31 was likely to be 19 trillion yen.

Prime Minister Yoshihide Suga said at a news conference on Friday that the size of a new stimulus package to restore the economy, maintain employment and sustain business activity would be finalised this week.

He said it would include an “unprecedented” $19 billion fund to promote carbon neutrality by 2050.

The world’s third-largest economy rebounded in the third quarter from a pandemic-induced slump, thanks to surging consumption and exports, but some analysts worry about slowing growth ahead because of a recent resurgence in coronavirus infections.

Despite some signs of improvement in recent months, analysts expect Japan’s economy to shrink 5.6% in the current fiscal year ending in March 2021 and say it could take years to return to pre-coronavirus levels.