Tuesday, August 2, 2016

Japan supports a new scale stimulus plan – The World

The Japanese government approved Tuesday,  August 2 massive stimulus package.

Tokyo seeks to revitalize its economy. The Japanese government approved Tuesday, August 2, a scale stimulus package, amounting to 28,000 billion yen, or 240 billion euros. In this amount, 7,500 billion yen (65 billion euros) will be allocated to new spending from the state and local authorities.

The outline of the program, announced in late July has been validated by the government team on Tuesday afternoon, but it will remain to the vote in Parliament as part of a law current finances of September.

Read also : Shinzo Abe announced a new massive stimulus plan

the plan aims to promote tourism and agriculture, the fight against population decline – facilitating childcare – and help the affected areas by the earthquake of March 2011 (Northeast) and April (Southwest), according to Japanese media.

Accelerate “abenomics”

another part is devoted to supporting companies affected by the vote on the “Brexit”. The British decision to leave the European Union has indeed caused a strengthening of the yen, damaging to exporting companies.

The plan, which also includes 6,000 billion yen (52.6 billion euros ) low-interest loans, also intends to promote major infrastructure projects. This is for example to accelerate the construction of the Maglev line, future Japanese magnetic levitation train to connect Tokyo and Osaka via Nagoya.

The Prime Minister, Shinzo Abe, has been strengthened by its victory the Senate on 10 July. The next day, the head of government had reaffirmed its commitment to accelerate “abenomics” measures taken since returning to power in December 2012 to boost third world economy, including through fiscal stimulus.

More than three years after the launch of this strategy meant overcoming inflation using three “arrows” (fiscal, monetary and structural), Abe and the Governor of the Bank of Japan, Haruhiko Kuroda, are in a race against time to get results. The triptych has indeed failed, for now, to keep growing sustainable Japan.

LikeTweet

No comments:

Post a Comment