Hot on the heels of the Japanese economic data releases of the past few days and my post yesterday highlighting concerns over savings rates comes more stimulus being thrown into the mix by PM Abe and his govt worth $29 billion saying it expects the plan to boost Japan’s GDP by 0.7%
Of the total, 1.8 trillion yen will be spent on measures such as distributing coupons to buy merchandise, providing low-income households with subsidies for fuel purchases, supporting funding at small firms and reviving regional economies.
The remaining 1.7 trillion yen will be used for disaster-prevention and rebuilding disaster-hit areas including those affected by the March 2011 tsunami. Tokyo will also seek to bolster the housing market by lowering the mortgage rates offered by a governmental home-loan agency.
Will it have a positive impact ? The jury remains out
Reuters has more here
Abe – Throwing more stimulus into the mix, but will it make any real difference?
