Japan unveiled a record $490 billion spending package to cushion the economic blow from the COVID-19 pandemic, bucking a global trend towards withdrawing crisis-mode stimulus measures and adding strains to its already tattered finances.
Spending has ballooned due to an array of payouts including those criticised for being unrelated to the pandemic, such as cash handouts to households with youth aged 18 or below, and will likely lead to additional bond issuance this year.
"Though Kishida has been known in the past for being somewhat hawkish, he appears set to continue the Abenomics paradigm for several more years." A pedestrian wearing a protective face mask crosses a street, amid the coronavirus disease outbreak, in the business district in Tokyo, Japan, May 21, 2020.REUTERS/Kim Kyung-Hoon
"We'll mobilise all available tools to fund the package, including issuing deficit-covering bonds," Kishida said in a group interview. He did not say how much debt could be issued."Inflating the size may have become the purpose with little discretion made on whether the spending would be effective," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "It's a lot of wasteful spending.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japan Plans $490 Billion Stimulus to Jolt Struggling EconomyJapan’s government approved a $490 billion package to support recovery from the pandemic, nearly double in size of what analysts were expecting and amounting to about one-tenth of Japan’s gross domestic product
Read more »
In major shift, Japan looking to accept more foreigners indefinitelyIn a major shift for a country long closed to immigrants, Japan is looking to allow foreigners in certain blue-collar jobs to stay indefinitely starting as early as the 2022 fiscal year, a justice ministry official said on Thursday.
Read more »
Japan diplomat pulls out of U.S. news conference over islet dispute with S.Korea -embassyJapan's vice foreign minister pulled out of a planned news conference with his South Korean and U.S. counterparts in Washington on Wednesday over a territorial dispute between the two U.S. allies, a Japanese Embassy spokesperson said.
Read more »
Japan looks to accept more foreigners in key policy shiftIn a major shift for a country long closed to immigrants, Japan is looking to allow foreigners in certain blue-collar jobs to stay indefinitely starting as early as the 2022 fiscal year, a justice ministry official said on Thursday.
Read more »
Japan Plans $490 Billion Stimulus to Jolt Struggling EconomyJapan’s government approved a $490 billion package to support recovery from the pandemic, nearly double in size of what analysts were expecting and amounting to about one-tenth of Japan’s gross domestic product
Read more »
Deep Instinct BrandVoice: Don’t Click Me: 5 Phishing Tricks To Watch Out ForThen the unthinkable happens – you unleash a devastating ransomware attack that costs your company millions.
Read more »