Japan: PM Kishida announces huge economic package $200 Bn to tackle Inflation

Tokyo, The Gulf Observer: Japan will spend $200 billion on a stimulus package to cushion the economy from the impact of inflation and the weak yen, Prime Minister Fumio Kishida announced on Friday.

But the central bank is refusing to budget from the ultra-loose policy that has hammered the Japanese currency this year, wiping out more than 20 percent of its value against the dollar.

The government hopes the 29 trillion yen in fiscal spending will rise to 72 trillion when private sector investments are taken into account, Kishida said after ministers approved an extra budget to partly fund the relief measures.

“We want to protect people’s livelihoods, employment and businesses, while strengthening our economy for the future,” he told reporters, adding that the move should help push up GDP by 4.6 percent.

Prices are rising in Japan at their fastest rate in eight years, although the three-percent inflation rate remains well below the sky-high levels seen in the United States and elsewhere.

Japan which has one of the world’s highest debt-to-GDP ratios has already injected hundreds of billions of dollars into its economy over the past two years to support recovery from the Covid-19 pandemic.