Japan announced a 27 trillion yen ($275 billion) stimulus package

Japanese Prime Minister Taro Aso speaks during a news conference
at his official residence in Tokyo October 30, 2008. Aso on Thusday unveiled
Japan's second economic package in about two months that
includes spending worth 5 trillion yen ($50.8 billion) as
the global credit crisis pushes the world's No. 2 economy into a recession.
REUTERS/Yuriko Nakao (JAPAN)
Prime Minister Taro Aso of Japan announced a 27 trillion yen ($275 billion) stimulus package on Thursday to shore up that country’s economy, vowing to dispel fears over the global financial crisis with expanded credits for small businesses and a cash payback to every household.

Mr. Aso said, "The purpose of the package is not to merely spur one-off demand, It is to generate solid economic growth by steady domestic demand".

The package — which will total 26.9 trillion yen ($273 billion) — will include 2 trillion yen ($20 billion) in fixed-sum benefits to every household, meaning a 60,000 yen ($600) payment for a family of four.

It also guarantees expanded loans and credits to struggling small- and mid-sized companies and includes a cut in payroll deductions for employment insurance and reduced fees for highways.

As the global financial crisis began to unfold earlier this year, Japan’s economy looked to be in good shape compared to other advanced nations, avoiding major bank failures and bailouts.

But Japan’s economy, which is largely driven by exports, is sputtering. On Wednesday, the government said industrial output fell for a third consecutive quarter, with further declines expected in the months ahead.

Related Posts :

1. China cuts benchmark interest rates by 27 basis points
2. The Fed to supply $15 bln swap line with New Zealand
3. Hungary to get $25 bln rescue packages from IMF

Sources :

The New York Times: Japan Offers Stimulus Package to Spur Its Economy, October 30, 2008

Please Note!

This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.