Japan unveils huge economic stimulus plan

Now Reading:

Japan unveils huge economic stimulus plan

Text size Aa Aa

The Japanese Prime Minister Shinzo Abe has announced an 87 billion euro stimulus package to create jobs and boost the recession-hit country.

The move comes despite concerns about Japan’s public debt, which is already more than twice the size of its 3.7 trillion euro economy.

Abe said: “I recognise that fiscal discipline is extremely important. I will aim towards returning the primary balance to the black.”

“But without economic growth, there is no hope for the future of Japan and for rebuilding our finances,” he added.

The package aims to create more than half a million jobs and boost economic growth by two percent.

The stimulus is a combination of construction projects, subsidies to companies and loan guarantees for small firms.

Financial analysts, including investment bank Nomura, said the stimulus would give the economy a big lift.

Japan’s Nikkei stock index jumped on the news, gaining 1.4 percent after Abe’s announcement.