Japan Unveils $140 Billion Economic Stimulus Package
Japan Unveils $140 Billion Economic Stimulus Package
Japan Unveils $140 Billion Economic Stimulus Package
News summary

Japanese Prime Minister Shigeru Ishiba is preparing to announce a ¥21.9 trillion ($140 billion) economic stimulus package aimed at addressing inflation and supporting wage growth. This package, which is expected to receive cabinet approval soon, includes ¥13.9 trillion from the general account and aims for a total impact of around ¥39 trillion when considering additional private sector funding. Notably, the package will provide direct financial assistance to low-income households and families with children. However, there are concerns regarding its potential to strain Japan's public finances, as the national debt is already twice the size of the economy. Some economists question the necessity of such a large package, given signs of improving private consumption and wage growth. The government's previous commitment to achieving a primary budget surplus in the coming fiscal year may also be jeopardized by this extensive spending plan.

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