Japan Adopts 3.5-T.-Yen Economic Stimulus Measures

Tokyo: The Japanese government, at a cabinet meeting Saturday, adopted 3.5-trillion-yen economic stimulus measures mainly to shore up flagging consumer spending and revitalize regional economies.

To help finance the measures, the government will adopt a 3.1-trillion-yen draft supplementary budget for fiscal 2014 in early January for submission to the Diet within the month, according to Jiji Press.

“By implementing the economic measures speedily, we will be able to underpin private consumption and beef up regional economies in order to spread the effects of the virtuous cycle of the economy all across Japan,” Abe told a meeting with ruling coalition officials prior to the cabinet meeting.

Japan’s real gross domestic product shrank at an annual rate of 1.9 pct in July-September this year, as demand remained sluggish after a spike that preceded the April 1 consumption tax hike to 8 pct from 5 pct.

Government officials said that the latest economic measures are estimated to boost Japan’s annual real GDP by around 0.7 pct.