Japanese Cabinet Approves Economic Stimulus Package Worth $275Bln

Japanese government on Tuesday approved a package of measures, amounting to over 28 trillion yen (about $275 billion at the current exchange rates), to stimulate the country's economy.

MOSCOW (Sputnik) — On July 27, Japanese Prime Minister Shinzo Abe said that Tokyo would support its economy with 28 trillion yen, amid slowing of emerging economies' growth and the Brexit referendum. Earlier in July, Japan authorities have already announced possible stimulus measures, but they have spoken about a multitrillion packages worth from 10 to 20 trillion yen.

According to the Kyodo news agency, the package of measures is aimed at tackling deflation and strengthening the national economy.

The cabinet is expected to increase expenditure by the central and local governments, as well as significant investments in the country's infrastructure and support of small and medium-sized enterprises.

Japan's economy, which is currently the third largest by nominal GDP in the world after the United States and China, has been affected by stagnation and slow economic growth for years.

In 2012, Abe had already announced measures to halt economic stagnation, including structural reforms, monetary easing and fiscal stimulus. The plan, dubbed Abenomics, was introduced after Abe’s election in December 2013. It has been described as a failure by the opposition.