Latest News

Monday, 21st November 2011
In Business In Japan,

Japanese government makes third economic injection

The Japanese government has approved a third financial injection to improve the nation’s economic conditions in a move worth 19 trillion yen (£158 billion).

Recent crises across the eurozone, alongside a strengthening currency and the aftermath of the March 11th disaster, have all pushed parliament into making another major financial decision.

Funds are due to be raised through bond issuance, tax hikes, sales of public assets and spending cuts, with MPs already in a bid to pass a bill that would see more tax increases.

This is the country’s biggest financial dilemma since its economic endeavours that followed the second world war.

The initiative is expected to last five years as the government strives to restore north-east coastal towns affected by the earthquake, ensuing tsunami and Fukushima disaster.

As part of the effort, 245 billion yen (£2 billion) will be used to dispose of contaminated soil hit by radiation leaks from the Fukushima Daiichi nuclear power plant.

On a positive note, the nation’s employment figures recently improved as unemployment is currently at just 4.1 per cent, down from a 5.6 per cent peak in July 2009, research from Trading Economics showed.

Posted by Mark Smith