Japanese government launches large-scale economic stimulus plan
Source: China Business News Release time: 2019-12-09
In order to maintain sustainable economic growth, the Japanese government recently launched a new round of economic stimulus plan, with a total size of about 26 trillion yen, of which the fiscal stimulus policy scale was 13.2 trillion yen.
This round of economic stimulus plan is more than 3 years away from the previous round. It aims to maintain Japan's economic growth through measures such as expanding public investment and strengthening technological research and development. According to the estimation of the Japanese government, the current round of economic stimulus plan has a 1.4% increase in the growth rate of Japan's gross domestic product.
Since Japan has maintained an ultra-loose monetary policy for many years, this round of economic stimulus plan is characterized by expansion of expenditures. Its three "pillars" are: investing to cultivate economic growth points after the 2020 Tokyo Olympics, investing in infrastructure construction, and increasing Investment in SMEs and agriculture.
Analysts believe that in the context of the global economic slowdown, the Japanese economy is currently growing slowly and the downward pressure is increasing under the pull of domestic demand. In order to prevent the increase in consumption tax from adversely affecting the economy and to prevent the economy from weakening further after the Olympics, the Japanese government decided to adopt stimulus measures in advance.
According to Japanese media reports, this round of economic stimulus plan will also set up a new fund with a total of about 320 billion yen, focusing on investing in technology development in the "post-5G" era, and supporting technological innovation in the field of health care and agriculture.
In the third quarter of 2019, Japan's real GDP grew at an annual rate of 0.2%. The International Monetary Fund released its "World Economic Outlook Report" in October, which keeps Japan's economic growth forecast at 0.9% this year, and predicts that Japan's economic growth will slow to 0.5% next year.