4 July, 2015 AsiaNews.it Twitter AsiaNews.it Facebook            

Help AsiaNews | About us | P.I.M.E. | | RssNewsletter | Mobile






mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato
e-mail this to a friend printable version


» 04/09/2009
JAPAN
Government to adopt 154 billion dollar stimulus package
Money is set to help companies and the unemployed and stimulate consumption. But experts warn it will just be a short-term reprieve that increases the tax burden in the future.

Tokyo (AsiaNews/Agencies) – Japan’s ruling Liberal Democratic Party released today the blueprint for a record US$ 154 billion stimulus plan, equivalent to 3.1 per cent of GDP. Prime Minister Aso had insisted on it and his government is scheduled to officially announce it tomorrow. It is not clear though where the money will come from but government sources say that it could be from new government, bench-mark 10-year bond yields worth 10-11 trillion yen. The plan is expected to include tax exemptions on home buying, a greater child-raising support allowance, help to jobless people, promotion for environmentally friendly products, measures in favour of solar panels and help for small companies in difficulty.

Japan is battling its deepest recession since Second World War with exports and domestic consumption plummeting and cuts in production and thousands of layoffs. Its economy shrank in fact 3.1 per cent in October-December from the previous quarter and is expected to have shrunk a further 2.5 per cent in January-March.

The government needs immediate results in light of upcoming elections. But analysts have warned that such a plan is likely to only have a short-term impact on personal spending without improving productivity. It will also not help the country rethink and reorganise its industrial model and economy.

“The contents [of the plan] look like temporary measures to front-load demand, but they do not pay attention to increasing productivity on the supply side,” economist Masamichi Adachi said.

Japan is the most debt-ridden industrialised country in the world and has already earmarked 33.3 trillion yen in new bonds for this fiscal year.

The stimulus plan also faces a potentially stormy ride through parliament, where the opposition controls the upper house and can stall legislation.

Mr Aso has threatened to bring forward an election due by October this year if the opposition stalls the package.


e-mail this to a friend printable version

See also
09/01/2011 JAPAN
Yoshihiko Noda's election to resolve a political and social crisis
by Pino Cazzaniga
09/29/2009 JAPAN
Prices and employment plunge as fear of deflation grows
08/28/2009 JAPAN
Tokyo-vote: towards a political earthquake
by Pino Cazzaniga
11/24/2008 CHINA
Beijing tries to stimulate domestic consumption, against unemployment and revolts
08/24/2011 JAPAN
Moody’s cuts Japan’s rating from Aa2 to Aa3

Editor's choices
ISLAM - MIDDLE EAST
Al Azhar and Vatican against terrorism. The ambiguity of the international community
by Bernardo CervelleraThe influential Sunni university denounces " heinous" violence of the Islamic state and demands the world defeat this group “through every possible means". Vatican: terrorism is a threat to all humanity. France claims to fight terrorism, but then sells weapons, aircraft, helicopter gunships to Saudi Arabia, which supports Islamic fundamentalism. Kuwait tolerates Salafis who support the Nusra Front and the Islamic state. Turkey against the Kurds; the United States against Iran, Russia and China.
TUNISIA - ISLAM
Tunis, stop terrorism by closing fundamentalist mosquesPresident Essebsi believes unified and global strategy needed to counter terrorism. The attack in Sousse almost simultaneous with those in France, Kuwait, Somalia. Islamic State claims responsibility.
VATICAN – ITALY
Pope in Turin tells young people to be chaste in love, go against the flow and not retire at 20In his last meeting on the first day of his visit to Turin, Francis met young people in Vittorio Square. In a Question and Answer exchange, he talked about love, friendship and loss of trust towards life. "I understand you. How many hypocrites speak of peace and sell weapons. How can one trust? By following Christ, whose act of extreme love, i.e. the Cross, saved humanity." The pontiff also looked at the horrors of the 20th century as evidence of the loss of trust towards world powers. He urged young people “not to retire at 20,” but “live, don’t just exist.”

Dossier

Copyright © 2003 AsiaNews C.F. 00889190153 All rights reserved. Content on this site is made available for personal, non-commercial use only. You may not reproduce, republish, sell or otherwise distribute the content or any modified or altered versions of it without the express written permission of the editor. Photos on AsiaNews.it are largely taken from the internet and thus considered to be in the public domain. Anyone contrary to their publication need only contact the editorial office which will immediately proceed to remove the photos.