Japan Approves $490 Billion Incentive Package


Japan’s government agreed on Friday to spend $490 billion on stimulus measures for its new prime minister. an economy battered by coronavirus restrictions and a supply chain crisis affecting the nation’s largest manufacturers.

Less than two months later, Prime Minister Fumio Kishida’s cabinet approved the 56 trillion yen stimulus package on Friday. won the runoff election for the leadership of the Liberal Democrat Party, which runs the country. JapanIts economy is the third largest in the world after the USA and China.

Officials said the stimulus package was Japan’s largest to date, accounting for about 10 percent of its gross domestic product. Mr Kishida said on Friday that it could increase GDP by about 5.6 percent.

“I want to put the severely damaged Japanese economy on a recovery trajectory,” he told reporters on Friday afternoon.

The package includes aid to businesses and hospitals in distress, money to strengthen semiconductor supply chains, and programs to encourage domestic tourism and investment in a nationwide university endowment fund.

It also includes a one-time cash distribution of 100,000 yen or $878 per child under 18 for households where the highest earning parent earns less than approximately $84,300 per year. About nine out of 10 households with children are eligible.

Cash benefits to young families are not particularly popular. Critics questioned the need for them. a country with an aging society.

Last spring, the government sent 100,000 yen stimulus checks to every resident, but did little to boost inflation or consumer spending. Analysts estimate that about 70 percent of aid goes to household savings.

Japan announced a partial relaxation of border restrictions earlier this month, lifting nearly all restrictions on its economy amid falling virus caseloads. Proportion of fully vaccinated people – 76 percent of the population, According to a New York Times follower – it is also one of the highest among rich countries.

But the ban on international tourists continues to put pressure on economic growth.



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