Japan’s Prime Minister Shinzo Abe announced on 4 December a 13 trillion yen ($162.7 billion) fiscal package, to boost the fragile growth in the country, amid a global slowdown.
Experts warn the country’s economy may slow down after the 2020 Tokyo Olympics, even though it has so far expanded this year. Japan’s exports also face uncertainty over the impact of Brexit and tensions in the Middle East.
Abe announced that “a strong policy package”was created, and added: “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 package amounts to 26 trillion yen ($239 billion) when government loans, credit guarantees and private-sector spending are included.
“Rather than pushing up the economy, we see it as easing negative factors,” said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.
According to the draft, the package will protect against downside economic risks, prepare the country for longer-term growth after the Olympics, and will improve its resilience to extreme weather.
It will also improve labor conditions, support small businesses and promote advanced technology development with increased skill training services.