Japan announces a $264 billion stimulus package against rising inflation.
Japan on Friday announced a 39 trillion yen (about $265 billion) stimulus package, including government subsidies for electricity and fuel costs to combat rising inflation at home.Prime Minister Fumio Kishida said that in many cases, rising fuel and energy prices will increase the price of products.In the fight against rising prices, we have been particularly focused on energy prices,” Kishida said at a press conference.The measure aims to prevent a similar situation in many parts of Europe, where prices have risen by up to 10%, according to the Chancellor.
The Japanese government has announced that it will subsidize gas and utility bills for its citizens. The Cabinet estimates that this will save the entire household a total of 45,000 yen.Prime Minister Kishida also announced his ¥100,000 grant to families with children under the age of two to boost the country’s declining birth rate despite the current economic environment.Japan, known for its long history of chronic deflation, is experiencing a rate of inflation not seen in the last 30 years, largely due to rising energy and commodity costs exacerbated by the war in Ukraine.September consumer price index rose his 3%.Prime Minister Kishida also announced measures to revitalize the economy hit by the pandemic, especially the tourism and entertainment industries.
In this regard, the government announced a stimulus plan that will include discounts of up to 20 percent for cinema, concerts and theme parks to help the hospitality sector to recover from the impact of Covid-19.Earlier this month, Japan lifted major border restrictions on foreign tourists, imposed during the pandemic, and gradually hoped for the sector to make steady recovery.The archipelago also seeks to protect its SMEs and encourage a stable and sustainable rise in wages, with Kishida announcing the establishment of a new venture and investment fund in “next generation growth areas” such as semiconductors, batteries and robots to support economic revitalization.Kishida stressed that Japan seeks to regain its position as a major manufacturer of semiconductors, a sector which he hoped will also attract more private investment.The Japanese government hopes these measures will help boost the country’s growth and bring the country’s GDP growth to around 4.9 percent, Kishida said.The Japanese economy grew by 0.9 percent year-on-year in the April-June quarter, mainly due to still weak consumption in the current economic scenario EFE.
