Global Economy: $1 trillion diffusion by Japan

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Japan has committed to diffuse around $1 trillion into the global economy. It proposed it to protect its economy from the widespread pandemic COVID-19.

On Monday, Prime Minister of Japan Shinzo Abe has announced around a relief package of 108 trillion yen, somewhere around $989 billion. The relief package includes:

  • Billions of dollars reliefs to families and small and medium scale business owners who are running out of cash or lost their source of income due to lockdown in the country.
  • Japan’s central bank will provide loans at zero interest rates.
  • There will be a significant relief in tax breaks and subsidies to affected sectors like aviation, hospitality, tourism, etc.

On Tuesday, In Tokyo, Shinzo Abe will give further information regarding the relief package at a press conference.

Recently, the United States passed a stimulus bill for a hefty amount of $2 trillion-dollar, most considerable emergency relief aid in the history of the world. It may boost the global economy as well. Other countries like France, the United Kingdom, Spain, Germany, Italy, and all major economies around the world have already announced a massive amount of relief package.

Japan recently announced such a tremendous amount of relief package mulling the situation of the country during the COVID-19 pandemic. It aimed to support the household and small businesses to cope with this sudden shock. Until now, Japan has more than 3500 COVID-19 positive cases and around 85 deaths. Massive unemployment, reduction in industrial production, and decreasing sales figures reported round the globe. These indicate towards staggering global economy.

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