Subscribe free to our newsletters via your
. Earth Science News .




Subscribe free to our newsletters via your




















POLITICAL ECONOMY
Japan approves huge stimulus for sluggish economy
By Daniel LEUSSINK
Tokyo (AFP) Aug 2, 2016


Japan's cabinet Tuesday approved a mammoth 28-trillion yen ($273 billion) package in its latest attempt to stimulate lacklustre growth, including cash to improve infrastructure and raise the birthrate in the ageing nation.

The stimulus plan announced last week is the latest in a series in recent years designed to fire up the world's number three economy.

"We have been able to put together a strong package that includes bold investment for the future," Prime Minister Shinzo Abe said Tuesday before the cabinet meeting which gave it the green light.

It includes 6.0 trillion yen in low-interest loans and just 7.5 trillion yen in fresh spending -- about a quarter of the total -- by the national and local governments over the next several years.

About 4.6 trillion yen is for spending in the current fiscal year ending March 2017.

The package is expected to be approved by parliament next month.

It comes after the Bank of Japan disappointed markets with modest tweaks to its own stimulus measures last Friday.

The government's stimulus includes help for small firms expected to be hit by Britain's vote last month to exit the European Union.

About 1,000 Japanese companies, big and small, do business in Britain and many use London-based offices as a staging point for the European market.

Britain's shock vote to leave the EU also sparked a rally in the yen as investors flocked to an asset seen as a safe haven.

A stronger currency hits the repatriated profits of Japan's exporters and makes their products more expensive overseas.

Cash payouts to low-income earners and for disaster relief were also on tap, with money set aside for areas of southern Japan hit by deadly quakes in April that left 49 dead and caused widespread damage.

Some funds would also be tapped for areas hit by the 2011 quake-tsunami disaster.

- 'Nothing groundbreaking' -

Tens of billions of dollars are earmarked for infrastructure spending, media said, including the first leg of a new maglev train line from Tokyo to Nagoya, about 290 kilometres (180 miles) away.

The train -- short for "magnetic levitation" -- can hit a top speed of over 600 kilometres an hour.

Other money will be used to fund day care centres and nursing homes as Tokyo tries to boost the birthrate and the workforce in the rapidly ageing nation.

"What Japan needs to do is to spur more demand and increase productivity by pushing through deregulation, increasing the nation's potential growth rate," said Nomura Securities economist Masaki Kuwahara.

Mizuho Securities said before the package was confirmed that it was likely to underwhelm.

"There is nothing groundbreaking here," it said of details reported in Japanese media.

Doubts are growing over a more than three-year-old bid by Abe to spur growth, dubbed Abenomics, as Japan's social welfare costs inflate one of the world's biggest national debts.

Abenomics -- a mixture of massive monetary easing, government spending and red-tape slashing -- had brought the yen down from record highs and made Japan's exports more competitive. But that has not been enough to deliver consistent growth.

dhl/pb/sm

MIZUHO FINANCIAL GROUP

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
POLITICAL ECONOMY
China new home prices rise faster in July
Beijing (AFP) Aug 1, 2016
Price rises for new homes in China accelerated in July from the previous month, a survey showed Monday, with some buyers possibly prompted by moves in some cities to curb prices. The average price for new homes in 100 major cities increased 1.63 percent month-on-month in June to 12,009 yuan ($1,814) per square metre, the China Index Academy (CIA) said in a statement. That was faster than ... read more


POLITICAL ECONOMY
False megaquake alert shakes Tokyo

Study highlights electric grids' vulnerabilities to extreme weather

Scientists release recommendations for building land in coastal Louisiana

Study: Crumbling school buildings yield crummy scores

POLITICAL ECONOMY
Lattice structure absorbs vibrations

Study looks at future of 2D materials

Self-organizing smart materials that mimic swarm behavior

Flexible building blocks of the future

POLITICAL ECONOMY
Abundant and diverse ecosystem found in area targeted for deep-sea mining

Researchers pinpoint abrupt onset of modern day Indian Ocean monsoon system

Veolia net profit hit by restructuring charge

Six more officials charged in Flint water scandal

POLITICAL ECONOMY
A recent pause in Antarctic Peninsula warming

How meltwater from the ice sheets disturbed the climate 10,000 years ago

NASA's Field Campaign Investigates Arctic North American Ecosystems

Warming Arctic could disrupt migration patterns of millions of birds

POLITICAL ECONOMY
Rice crops that can save farmers money and cut pollution

Brazilian restaurants turn waste back into food

Ancient rice DNA data provides new view of domestication history

Mulching plus remediation corrects contaminated lawns

POLITICAL ECONOMY
Southern China braces for Typhoon Nida

Cleanup in Maryland town after deadly flash floods

Ancient temples in the Himalaya reveal signs of past earthquakes

11 killed and 30,000 left homeless in Niger floods

POLITICAL ECONOMY
US, Senegal troops wind up first-ever emergency exercise

Libya unity government demands explanation over French troops

Five missing soldiers found in Nigeria: army

Tide turns against Liberia's biggest slum

POLITICAL ECONOMY
Voice control in orangutan gives clues to early human speech

1.7 million-year-old foot bone offers earliest evidence of malignant cancer

Biologists home in on paleo gut for clues to our evolutionary history

Early humans used mammoth ivory tool to make rope




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement