Japan approves fresh $1.1 trn stimulus to combat Covid-19 economic fallout

The latest package includes 33 trillion yen in direct spending, the Ministry of Finance (MOF) said.

Japanese Prime Minister Shinzo Abe's cabinet approved on Wednesday a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world's third-largest economy deeper into recession.

The record stimulus of 117 trillion yen, which will be funded partly by a second extra budget, followed another 117 trillion yen package rolled out last month.

The new package takes Japan's total spending to combat the virus fallout to 234 trillion yen ($2.18 trillion), or about 40% of gross domestic product.

The combined spending ranks among the world's largest fiscal packages to deal with the coronavirus, approaching the size