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English | دری

Japan cabinet approves second stimulus package.

in International Business

Japan cabinet approves second stimulus package.

Japanese lawmakers have approved another stimulus package to revive growth, as the flagging economy becomes a key issue in the upcoming general election.

The money totalling 880bn yen will be mainly used to create jobs and support small businesses, the cabinet said.

New data showed industrial output rising in October, but there were very few other positive indications.

Analysts don’t believe the stimulus will improve economic conditions.

“The total size is not enough to really boost gross domestic product, especially for early next year,” said Junko Nishioka from RBS Japan Securities. “It is not enough to change the mood of business activity.”

In the September quarter, Japan’s economy contracted by 0.9% compared to the previous quarter.

The contraction is equivalent to an annualised drop in GDP of 3.5%.


Tags assigned to this article:
japan economyJapan stimulus

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