Japan's Shinzo Abe announces $120 billion fiscal stimulus to help the economy

Japanese Prime Minister Shinzo Abe announced a $120 billion stimulus package on December 5 to contribute to the growth of the country's economy amid lawmakers wishing for sustainable growth in the face to huge investments that have been approved for the 2020 Tokyo Olympics. 

Japan approves $120 Billion Stimulus Package 

Japan cabinet had earlier announced the size of the fiscal package which received a final nod of approval on Thursday. The Government will disclose further details of the package later. During the official meeting of the lawmakers and the officials, Abe said that the government has devised a strong fiscal policy that will help the economic growth. The decision came in the times of economic turbulence when the global economic risks have forced the state banks in the US and Europe to cut interest rates. 

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Abe added that the new policy is based on three pillars which will ensure disaster rebuilding and safety, providing intensive support to overcome downside economic risks and sustaining economic vitality even after the Tokyo Olympics. According to sources, the package will cover Government loans, credit guarantees, and private-sector along with extra budget of this year's spending and those approved for fiscal 2020.

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The package will not just help the growth but also help in uplifting the areas affected by the Typhoon Hagibis, said Abe. If the package is passed then it would further Japan’s contributing culture. However, the Abe administration has vowed to put an end to it.

The fact remains that Japan has borrowed the biggest debt as compared to other developed countries. The diminishing demand for export by China has majorly affected Japan's growth. According to reports, it fell below their expectations during the third quarter. Another reason could be a sharp decrease in South Korean tourists due to the on-going political tug-of-war between the two countries. The Typhoon in the month of October had a drastic impact on Japan's economy, plunging it to a 50 year low. 

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