• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
Thursday, May 26, 2022
The Millennial Source
TMS
Home WORLD

Japan to receive economic boost with stimulus package

byDhipa Palani
March 31, 2020
in WORLD
Source: Invest Asia

Source: Invest Asia

Share on FacebookShare on TwitterShare on Linkedin



Japan has announced plans to cushion the economic impact caused by the novel coronavirus (SARS-CoV-2) by drawing up an emergency stimulus package.

The sum is said to be greater than the US$100 billion stimulus package provided after the 2008 recession in Japan, although no figures were immediately announced. As part of the stimulus package, cash handouts will reportedly be extended to struggling households. 

Japan, however, has no plans to declare a national emergency amid rising coronavirus cases in the country, topping 2,000 on March 31, according to a Reuters calculation based on ministry data and media reports.

Hideo Kumano, chief economist at Dai-ichi Life Research Institute has recently stated: “I think the possibility of a lockdown of the Tokyo metropolitan area is rising.” A lockdown could shrink the nation’s economy by 1% or US$47 billion (5.1 trillion yen).

Downward trend continues 

Japan’s economy is heading towards a recession as the coronavirus pandemic and the postponement of the Tokyo Olympics to July 2021 take their toll. Japan’s industrial growth moved at a much slower pace in February this year as compared to the output in January. Production is reportedly expected to continue to decline. 

Economists say the shutdown in the global economy is directly affecting Japan’s exports and output, and the world’s third-largest economy by gross domestic product (GDP) will continue to plunge deeper in the coming months. 

“Global economic activity is shut down, so a plunge in exports and output is inevitable. Japan’s economy will contract more deeply in April-June than in the first three months of this year, and may not bounce back quickly,” says Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

Olympics postponement preferred

Source: FT

Japan had hoped to boost investment flow into the economy with the Tokyo Olympics 2020 before it was postponed.

Experts, however, believe that a postponement is a better move than cancellation, despite the economic implications of the postponement. “The postponement is clearly better than a cancellation, and [in that regard] it is a lifesaver for Japan,” said Yasuhide Yajima, chief economist at NLI Research Institute, a unit of Japan’s largest life insurer, Nippon Life Insurance.

“Still, the decision will blow off the standard scenario for this year that had envisaged some recovery of the Japanese economy around the sporting event.”

[article_ad]

Have a tip or story? Get in touch with our reporters here! 

Related

Tags: AsiaBusinessShort read
ShareTweetShare

Latest Posts

Hong Kong customs

Hong Kong customs seizes illegal smoking products worth millions after e-cigarette ban

May 26, 2022
Biden Asia

Several key takeaways from Biden’s trip to Asia

May 25, 2022
Singapore

What you need to know about the changing egg freezing laws in Singapore

May 25, 2022

Airbnb closing domestic operations in China to focus on outbound travel

May 24, 2022

US would respond “militarily” if China tries to take Taiwan by force, says Biden

May 24, 2022

US President Joe Biden says he’s prepared for possible North Korea nuclear test during Asia tour

May 23, 2022

Google to declare bankruptcy in Russia

May 19, 2022

The US SEC investigates Wall Street over use of unapproved messaging apps

May 19, 2022

China gives property-buying benefits to families with three children amid declining housing market and birth rates

May 18, 2022

SUBSCRIBE TO THE TMS NEWSLETTER

By providing your email, you agree to our Privacy Policy

The Millennial Source Ltd. 2021

No Result
View All Result
  • Your daily briefing
  • About us
  • Explore
    • Startups
    • Climate change
    • Tech giants
    • Crypto
    • The future of work
    • Banking giants
    • Economy
  • Lifestyle
  • TMS archives
  • Write for us
  • Contact
  • Privacy Policy & Terms

© 2022 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

 

Loading Comments...
 

    string(24) "jsonld single post debug"
    The Millennial Source
    Powered by  GDPR Cookie Compliance
    Privacy Overview

    This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

    Strictly Necessary Cookies

    Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

    If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.