Japan wants to stimulate the corona-plagued economy with another huge stimulus package. Prime Minister Yoshihide Suga announced on Tuesday a package with a total volume of 73.6 trillion yen (583 billion euros) that his cabinet wanted to approve during the day. They want to secure jobs, give companies a helping hand, revitalize the economy and pave the way for growth using environmentally friendly and digital technologies, Suga said at a meeting with the ruling parties. Actual fiscal spending is around 40 trillion yen.
The overall package already draws on the state budget for the coming tax year and includes, among other things, the increase in subsidy programs for domestic tourism and to secure jobs. To finance this, Japan will issue a third supplementary budget for the fiscal year running through March.
Japan’s economy grew by 22.9 percent in the third quarter – and thus shows clear signs of recovery from the impact of the corona pandemic in spring and summer. The growth is stronger than expected. The official statisticians initially calculated an increase in the gross domestic product of 21.4 percent.
Economists estimated the value published on Tuesday as a sign of the recovery of the world’s third largest economy from a recession that began in late 2019, before the outbreak of the corona pandemic. But increasing corona infection numbers are clouding the business prospects. Experts reckon it will take years for Japan’s economy to fully overcome the effects of the global pandemic.
During the Corona crisis, Japan tried to keep its influence on companies as low as possible – accompanied by appeals to wear face masks, observe distance rules, pay attention to hygiene and use disinfectants.