Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Japan eyes another big stimulus package before possible Sept poll - Nikkei

EconomyJun 10, 2021 01:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Japan's Prime Minister Yoshihide Suga speaks during a news conference after the government's decision to exted a state of emergency amid coronavirus disease (COVID-19) pandemic, at the prime minister's official residence in Tokyo, Japan May 28

By Leika Kihara

TOKYO (Reuters) -Japanese Prime Minister Yoshihide Suga is likely to compile another big economic stimulus package before calling a snap election in September, the Nikkei newspaper said on Thursday, although most major economies have scaled back crisis-mode policies to combat the coronavirus.

Opposition parties have called for a package sized around 30 trillion yen ($274 billion), a proposal Suga brushed aside in a debate with their leaders on Wednesday.

While the Nikkei did not report the expected size of the package, some analysts put a ballpark figure of 20-30 trillion yen as it would be enough to fill Japan's output gap - or the estimated size of slack in the economy.

"The output gap seems to be a benchmark when the government compiles a stimulus package, so the next one could be sized around 20-30 trillion yen or even bigger," said Toru Suehiro, a senior economist at Daiwa Securities.

"But the immediate boost to growth may be limited, as most spending will be for safety nets and steps like digitalisation and green investment that take long for the effect to appear."

Tokyo has deployed massive stimulus packages totalling $3 trillion over the past year to combat the pandemic, further straining public finances by adding to the debt pile that is the biggest among major industrialised nations.

Suga has repeatedly brushed aside the chance of compiling another stimulus package any time soon, arguing that the government still had money left over from a pool of reserves set aside to meet immediate funding needs to combat the pandemic.

With some lawmakers from within his own Liberal Democratic Party (LDP) calling for bigger spending, however, many analysts expect Suga to compile an extra budget to fund another stimulus package later this year.

The size and timing of the package will depend much on when Suga call a snap election, a decision complicated by low approval ratings for his handling of the pandemic and the Tokyo Olympic Games starting from July 23.

A lower house election must be held around the time the incumbent lawmakers' term end on Oct. 21. Suga must also win a ruling party leadership election when his term ends on Sept. 30.

($1 = 109.5300 yen)

Japan eyes another big stimulus package before possible Sept poll - Nikkei
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email