Japanese government to announce 12tr yen stimulus boost
City Index January 7, 2013 3:15 PM
<p>The Japanese government is set to announce a 12 trillion yen stimulus programme, according to the nation’s media.</p>
The Japanese government is set to announce some 12 trillion yen (£83.6 billion) in stimulus measures in a bid to boost the nation's ailing economy.
This is according to articles published in Kyodo News and the Yomiuri newspaper, which reported the figure for extra spending in the financial year through to March 2013 and prime minister Shinzo Abe told business chiefs earlier today (January 7th) that he is looking to implement measures this week.
Japan – which is the world's third-largest economy – is in recession and this programme of stimulus may help drive the nation's recovery forward.
Mr Abe has vowed to end deflation and encourage growth, but the country's sky-high debt – which is more than twice its gross domestic product – remains a concern to economists and commentators, Bloomberg reports.
At close of play in Tokyo this morning, the benchmark Nikkei 225 index fell by 0.8 per cent to an index value of 10599 points.
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