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Japan mulls ¥100 trillion stimulus package after lifting COVID-19 state of emergency

26 May 2020 12:44

TOKYO - The Japanese government is considering a fresh ¥100 trillion stimulus package to assist companies affected by the coronavirus (COVID-19) pandemic after it lifted a state of emergency in Tokyo and four other areas on Monday (25/5).

As reported by The Nikkei, the stimulus package will be financed by a second supplementary budget after the government announced ¥117 trillion in emergency stimulus last month. In total, Japan’s spending in response to the COVID-19 crisis will amount to 40% of the country’s GDP.

“The government and the Bank of Japan will continue to work as one to resolve the situation by adopting all necessary steps,” Japanese Prime Minister Shinzo Abe told the press on Monday.

“We will underpin corporate financing of Japan firms by mobilising an overwhelming amount of funds in an ‘all Japan’ fashion.”

Analysts project that Japan’s economy will be contracted by 22% in the second quarter of 2020 after it fell into recession in the first quarter. (MS)

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