Japan approves new stimulus for ailing economy
News On Japan via AP -- Oct 26

Japan's Cabinet approved a 423 billion yen ($5.3 billion) economic stimulus package on Friday, moving to fend off recession amid signs the recovery in the world's third biggest economy is faltering.

The emergency spending package, which is double the size originally expected, is also meant to help make up for lost momentum from reconstruction in the region devastated by the March 2011 earthquake and tsunami.

Prime Minister Yoshihiko Noda's leeway to boost spending is limited by a legislative standoff preventing issuance of deficit-covering bonds. Noda has ordered the government to draft further measures to boost growth by next month.

Friday's decision coincided with news of a 0.1 percent fall in the consumer price index in September, adding to pressure on the central bank to ease policies to help fight deflation, or falling prices, which can hinder economic growth.

政府は、国内の景気を下支えするため、4000億円規模の緊急経済対策を26日朝の閣議で決定しました。

Source: AP



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