22 May 2024

TOKYO (Reuters) – Japan will compile a fresh economic stimulus package worth 73.6 trillion yen ($708 billion), Prime Minister Yoshihide Suga said on Tuesday, signalling his resolve to pull the country out of its coronavirus crisis-induced slump.

The new stimulus package will include fiscal spending worth around 40 trillion yen, Suga said in a meeting with ruling party executives.

The government is set to finalise the stimulus package later on Tuesday, which would follow a combined $2.2 trillion from two previous packages that focused on dealing with the immediate strain on households and business.

The new economic measures would help push “new economic growth,” Suga said at the meeting.

The package is likely to include subsidies and incentives to prod companies to boost green investment and spending on digitalisation, an area Suga has laid out as his key policy priorities.

Japan’s economy rebounded in July-September from its worst postwar contraction in the second quarter, though many analysts expect a third wave of COVID-19 infections to keep any recovery modest.