The Prime Minister of Japan, Shinzo Abe, launched the biggest economic stimulus to fight COVID-19. (Image via The Straits Times)

Abe unveils ¥108 trillion stimulus package, 20% of Japan's GDP

Alfonsus Adi Putra
Politics & Economic
News Flash Japan
Apr 07, 2020
1602
On Monday, the Prime Minister of Japan, Shinzo Abe, pledged to roll out a gigantic, unprecedented stimulus package of about 20% of Japan’s economic output. The decision came as an effort by the Japanese government to do “whatever it takes” to tackle the novel coronavirus (COVID-19) widespread in Japan.

Confirmed by the cabinet on Tuesday, the stimulus package will total ¥108 trillion, even exceeded the one in the 2009 financial crisis totaling ¥56 trillion in size with fiscal spending of ¥15 trillion.

Talking to the reporters, Abe said that the government decided to carry an unprecedented stimulus package following the immense damage inflicted by the COVID-19 to Japan’s economy. While not providing further details, Abe said that the stimulus also included ¥26 trillion which was originally meant to strengthen Japan from the U.S-China trade war.

The package, turning out bigger than anticipation, gave the market players sense of security, especially those who are facing income decline and having to stay indoors. The stimulus features cash payouts of more than ¥6 trillion for the Japanese households and small and midsize firms. The COVID-19 fueled the fears that Japan might be on the brink of recession.

No later than Tuesday, Abe promised that he would declare a state of emergency.

The Japanese government would also allow small and midsize firms to borrow at zero interest from private financial institutions and grace period for tax and social security payments totaling ¥26 trillion to help these firms continue their business operations.

Source: https://bit.ly/3aPfGiF

Politics , Economy , Health , Medical , Coronavirus , Pandemic , COVID-19 , Asia , Japan , Shinzo-Abe