Japan is making a major stimulus to get the country’s economy going, which has been weakened by the coronavirus pandemic.
The Japanese prime minister on Friday outlined a record-breaking stimulus package of 56 trillion yen, or $ 490 billion, including cash distributions and aid to ailing businesses.
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“The package has more than enough content and scope to give a sense of security and hope to the people,”[ads1]; Fumio Kishida told reporters.
The proposal was put to the approval of the Minister later in the day, but still needs parliamentary approval.
The plan includes giving $ 880 each in financial aid to those 18 or younger, and aid to ailing businesses, Kishida and other politicians said.
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Japan has never had a full lockdown during the pandemic, and infections remained relatively low, with COVID-19 deaths of around 18,000 people.
However, the world’s third largest economy stagnated even before the pandemic hit.
The scale of the latest package will require Japan to sink deeper into debt by issuing bonds.
Japan’s economy declined at an annual rate of 3% in the period July-September, mainly due to weak consumption. Analysts say the economy is unlikely to pick up until next year.
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Kishida, who has promised “a new capitalism” for Japan, took office in October.
The Associated Press contributed to this report.