Friday, 30th November 2012
In Business In Japan,
Japan gets stimulus package to the tune of £6.7 billion
Prime minister Yoshihiko Noda has approved a second round of stimulus worth £6.7 billion for Japan.
In a bid to support the country's lagging economy and in the run-up to December's elections, the government announced new measures.
This stimulus package will be funded by the reserve and is around twice as large as the earlier financial relief launched in October 2012 which focused on reconstructing the country.
The measures will include employment support, a funding injection of hard hit small enterprises and the rebuilding of earthquake and tsunami hit regions in March 2011.
"The total size is not enough to really boost gross domestic product, especially for early next year. It is not enough to change the mood of business activity," stated Junko Nishioka from RBS Japan Securities to the BBC.
Plans to increase the consumption tax from 2014 may be thwarted if the economy declines further as this would be especially problematic for the Japanese government.
Posted by Mark Smith