Japan has unveiled a fresh round of stimulus for the Japanese economy, amounting to $708 billion, with about $384 billion set to come in the form of direct spending. The move seeks to pull the country out of its coronavirus-induced economic slump.
The package includes a $19.2 billion fund to promote carbon neutrality by 2050, $9.6 billion to accelerate digital transformation, and $14.4 billion in subsidies to support restaurants hurt by shortened trading hours during the pandemic. It will also include extensions of subsidy programs aimed at promoting domestic travel and spurring consumption.
In April this year, the Japanese government approved the first stimulus package, worth $1 trillion, which was equal to 20% of its economic output – far more than the 11% percent of the U.S. stimulus package and the 5% of output for Germany’s package. In May, the country unveiled a second $1 trillion coronavirus economic stimulus package, funded by a second supplementary budget of $2.9 trillion that will be paid for with new bond issuances.
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