|Japanese Prime Minister Yoshihide Suga|
Japanese Prime Minister Yoshihide Suga this morning 8/12 announced the relief package at a meeting with representatives of the ruling Liberal Democratic Party. In particular, Japan will spend 40,000 billion yen on direct fiscal spending and initiatives to reduce carbon emissions and promote digital technology.
The Japanese move took place in the context that countries around the world were still strained to fight the Covid-19 epidemic and proposed stimulus packages for economic recovery. In the US, the country’s political scene is deeply divided after many controversies in Congress about the trillion-dollar aid package that has yet to come to an end.
The US $ 708 billion bailout package of Japan is expected to be confirmed by the Cabinet by the end of today December 8, bringing the total scale of this stimulus economy during the Covid-19 era to $ 3,000 billion.
Japan’s two previous economic bailout packages totaled $ 2,200 billion, focusing on quickly solving the problems of households and businesses due to the Covid-19 epidemic.
In this stimulus package, Japan will set aside 2,000 billion yen for its carbon neutrality plan by 2050, 1,000 billion yen for digital transformation, and 1,500 billion yen to support restaurants affected by withdrawal. short duration of operation during Covid-19.
Besides, investing in digital and green initiatives is also one of the top priorities that Japan’s Prime Minister Suga has set.
The world’s third-largest economy recovered in the third quarter of 2020 after falling into the worst post-war recession in the second quarter. Meanwhile, many analysts predict the third wave of Covid-19 infection may impede Japan’s economic recovery momentum and the recovery will be modest.