politics

Japan expected to compile next economic stimulus package in fall: Amari

8 Comments
By Kaori Kaneko and Izumi Nakagawa

Japan is expected to compile a stimulus package to boost the economy in the autumn, as its previous two packages were aimed at preventing firms and households from bankruptcy amid the coronavirus pandemic, a close ally of Prime Minister Shinzo Abe said.

Akira Amari, head of the ruling Liberal Democratic Party's tax panel, said in an interview with Reuters that it was not out of the question that Abe could call a snap election this fall before his term as the premier ends next September.

Support for Abe has fallen due to dissatisfaction with his handling of the pandemic, his attempt to extend top prosecutors' retirement age, an arrest of an ex-justice minister and suspicions of wasteful public spending in programs to support tourism and small companies.

Amid deepening damage to his popularity, there has been some speculation Abe may call a snap election.

"The government is expected to compile a full-scale economic stimulus package to support growth this fall as the previous two were to protect lives, jobs and firms. In that sense, comprehensive steps to boost the economy are not in place yet," Amari said.

"The chance is not zero that the premier will seek the public mandate with pledging a full-scale economic package this fall."

Abe said last week that he was not at all thinking of calling a snap election but would not hesitate to do so if needed.

The government has compiled two stimulus packages so far totaling $2.2 trillion to ease damage caused by the coronavirus crisis but over half of the respondents to a Reuters survey were critical of the response.

Amari, a former economy minister, played a key role in the premier's "Abenomics" policy, a mix of aggressive fiscal, monetary stimulus and pro-growth steps. He said he would disagree with the idea of cutting Japan's sales tax to help the economy but cash payouts would be more effective.

Asked about Japan's ballooning public debt, which is the highest among advanced economies, Amari said discussions of primary budget balance would be a long way off.

© Thomson Reuters 2020.

©2020 GPlusMedia Inc.

8 Comments
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well i did not get even application for my 100.000 yen yet...

0 ( +0 / -0 )

All this money printing will create hyper inflation and make savings worthless. Don't forget the power of gold...

-2 ( +1 / -3 )

Who gave negative here? Maybe you study history of money. What is really money? You will find out that gold is the only real money and the notes that you think is money is nothing more than debt of someone else... Gold Was 5000 yen 2005 now it's 190000yen... Name me one other asset class in Japan that performed better?

-1 ( +1 / -2 )

Typo gold was 50000yen in 2005...now 190000yen in 2020.

-1 ( +1 / -2 )

Just putting these two sentences together explains everything:

"........  compile a stimulus package to boost the economy in the autumn ....."

and

"...... before his (Abe's) term as the premier ends next September........"

Sounds to me like trying to buy votes or trying to be more popular among voters.

0 ( +0 / -0 )

Pretty sure 80% of whatever package will go to political families and their friends. Most of whom can pass down their wealth tax free via their "political funds".

Doesn't really matter for the average people. Well, don't really need to care about average people, since they always have a 100% chance of winning every election now and forever.

1 ( +2 / -1 )

Any stimulus should include an increase in Research and development.

Japan is being left behind. S. Korea is spending 2x as much as Japan is, Israel another country doing well also spends a lot on R&D.

1 ( +1 / -0 )

All this money printing will create hyper inflation 

Can you explain how japan has had the most aggressive "money printing" program in the world for the past 20 years, and ends up with deflation or inflation barely above zero percent?

0 ( +0 / -0 )

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