Japan will increase government spending by about $53.5 billion to keep its economic revival program on track. The government approved the stimulus package Thursday to neutralize the impact of a tax hike meant to start tackling the country’s huge debt.
Some 5.5 trillion yen will be used to promote reconstruction work in areas worst affected by the March 2011 earthquake and tsunami. Prime Minister Shinzo Abe hopes the measures will add about 1% to GDP and create 250,000 jobs.
The prospects for the world’s third largest economy have brightened substantially since Abe first set out his ambitious plan to haul Japan out of years of stagnation and deflation.
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