Kyoto: Prime Minister of Japan Fumio Kishida announced on Thursday a stimulus package worth $113 billion aimed at easing the pain from inflation.
“This package… is expected to total in the lower range of the 17 trillion yen level,” Kishida said in a government meeting with ruling party officials. PM’s Office of Japan wrote on platform X “On November 2, PM Kishida attended the policy Roundtable of the Government and Ruling Parties at the Prime Minister’s Office”.
The stimulus package announced by Japanese Prime Minister Fumio Kishida on Thursday is one of the largest in the country’s history. It is aimed at easing the pain from inflation, which has been rising at its fastest pace in decades.
The package includes a number of measures, including:
- Cash handouts to low-income households and businesses
- Subsidies for gasoline and other energy costs
- Tax breaks for businesses that invest in new equipment and technology
- Funding for infrastructure projects
The package is expected to have a significant impact on the Japanese economy. It is estimated that it will boost GDP growth by 1.2% and create 1 million new jobs. Furthermore, it will likely add to Japan’s debts with the country already having 261 per cent in 2022, one of the world’s highest ratios of liabilities to GDP.
In the past three years, post-COVID, the government injected hundreds of billions of dollars into the economy for recovery, it witnessed inflation on the back of Ukraine war. Also, a weaker yen made imports more expensive. In 2022, yen became the world’s worst-performing currency as it slipped low against dollar and its weakest reading against the Euro since 2008.
The announcement of the stimulus package is a sign that the Japanese government is taking the threat of inflation seriously. It is also a sign that the government is willing to take decisive action to protect the economy and the livelihoods of its citizens.
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