Home / World News / Japan approves fresh $1.1 trn stimulus to combat Covid-19 economic fallout

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 takes off mask as he speaks to reporters at the prime minister's official residence in Tokyo. Photo: PTI

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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.

Reuters Tokyo

3 min read Last Updated : May 27 2020 | 6:47 PM IST

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

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