Tokyo launches 44 billion euro stimulus package for domestic economy
Tokyo (AsiaNews / Agencies) - The Japanese government today approved a financial plan of 5.05 trillion yen (44 billion euro) to finance an economic recovery. According to reports in the press, the change in the budget approved today will be submitted to parliament and the measures will focus on five issues, considered priorities: employment, economic growth, social welfare, the regional economy and the revision of legislation for the disabled.
The Japanese economy, hit by a severe recession in 2008-2009, has shown signs of recovery thanks to a revival in exports, but is currently threatened by deflation and the slowdown of global growth: at the beginning of September, the centre-left government of Naoto Kan had approved a stimulus package of 920 billion yen (more than 8 billion Euros), but obviously this amount was not considered sufficient.
The economic growth registered at is beginning to feel slowdown, due to reduced foreign demand and a stronger yen, which penalizes exports, as well as an underlying persistent deflation. Moreover several initiatives that encouraged domestic demand, such as government grants for the purchase of cars and electronic products have expired.