Japan Emergency Stimulus Package Worth 228.6 billion

Japan’s emergency stimulus package to boost its slowing export-reliant economy will be worth over 20 trillion yen ($228.6 billion), with the government compiling a 13.1 trillion yen extra budget for this fiscal year, sources close to the matter said Tuesday.

The package, which includes public-private initiatives, is aimed at bolstering the nation’s trade and promoting corporate investment by increasing public works projects in a bid to achieve sustainable economic growth.

The government of Prime Minister Shinzo Abe, who took office on Dec. 26, is scheduled to finalize the emergency stimulus package on Friday. The extra budget for the year through March 31 is expected to be approved by the Cabinet next Tuesday.

The outline of the emergency package was approved on Tuesday by the government at the first meeting of a newly created policymaking framework, named the headquarters for Japan’s economic revival, chaired by Abe.

“It’s a historic challenge to combat deflation that has lingered for more than a decade,” Abe said during the meeting, in which all Cabinet members participated.

The outline of the package stipulated that the government will make a mechanism to strengthen cooperation with the Bank of Japan to beat deflation as soon as possible, while closely monitoring the development of the foreign exchange market.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza