Japan Seeks to Mitigate Possible Negative Impact of Brexit With Stimulus

Japan plans to launch an economic stimulus package worth over 28 trillion yen in order to mitigate the possible negative impacts of Brexit.

MOSCOW (Sputnik) — Japanese Prime Minister Shinzo Abe said Wednesday the country would come up with an economic stimulus package worth over 28 trillion yen (almost $266 billion) in order to mitigate the possible shocks of Brexit.

According to the Kyodo news agency, Tokyo is expected to boost public expenditure on building infrastructure and bolstering efforts to increase farm exports and attract more tourists from abroad.

Part of the package is expected to be covered by the government, while it will also be partially covered by investment programs and fiscal loans not based on the general budget.

In late June, Abe said the country would continue working with the G7 economies to minimize the impact of the United Kingdom's exit from the European Union on global financial markets.

The UK decision to cease its EU membership, supported by almost 52 percent of voters in the June 23 referendum, has sent global financial markets into a frenzy and caused the depreciation of the British pound and the strengthening of the yen, while Japan needs a weaker national currency to boost its economic growth.