Japan cabinet green-lights 225-billion-dollar stimulus
Tokyo - Japanese Prime Minister Shinzo Abe's cabinet on Friday approved a stimulus package worth 20 trillion yen (225 billion dollars) to pull the world's third-largest economy out of recession.
The package, which includes large-scale public works projects and measures to stimulate investment, was expected to boost economic growth by 2 per centage points and create about 600,000 jobs, the premier said.
The government, the most highly in debted in the world, was likely to issue an additional 5 trillion yen in bonds for the current financial year, which ends March 31, to fund the package.
Abe, who was inaugurated in late December, said it would still be "important to maintain fiscal discipline." Japan is in recession as it struggles with a stronger yen, falling exports, the eurozone debt crisis and growing tensions with China, the nation’s largest trading partner.
Its economy shrank at an annualized pace of 3.5 per cent in the July-to-September quarter and 0.1 per cent in the April-to-June quarter.
The government also said Friday that the country logged its second-largest account deficit in November due to slower shipments.//DPA