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You are here: Home / Japan ruling party eyes 100 trillion yen stimulus to battle coronavirus

Japan ruling party eyes 100 trillion yen stimulus to battle coronavirus

TOKYO (Reuters) – Japan’s ruling party called for stimulus worth a total of 100 trillion yen ($926 billion), or 16-17% of economic output, to combat the hit to the economy from the coronavirus, with the government set to sell bonds worth 16 trillion yen to help fund it. Liberal Democratic Party policy chief Fumio Kishida unveiled the government’s draft proposal, saying he wanted to secure a stimulus package worth at least 60 trillion yen, with direct spending worth 20 trillion yen. Taking account of a package of measures compiled last December to ease the pain from the fallout of the Sino-U.S. trade war, the combined size of the stimulus steps could top 100 trillion yen, Kishida said. That would well exceed the size of a stimulus package Japan rolled out in the wake of the 2008/09 global financial crisis, which totalled 57 trillion yen with 16 trillion yen in spending. “The size of the measures would reach 16-17% in terms of Japan’s GDP, bringing it on a par with U.S. measures totalling $2.2 trillion,” Kishida told reporters. To fund the package, Japan has no choice but to issue deficit-covering bonds, another lawmaker said, straining the industrial world’s heaviest debt burden… Read full this story

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Japan ruling party eyes 100 trillion yen stimulus to battle coronavirus have 299 words, post on www.reuters.com at March 30, 2020. This is cached page on wBlogs. If you want remove this page, please contact us.

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