Japan Details New Stimulus Measures

The Japanese government released details of its newest $11 billion stimulus package Friday, saying that the economy, while not as weak as originally feared, still needed help. The Cabinet of Prime Minister Naoto Kan approved the stimulus measures, aimed at fighting deflation, boosting domestic consumption, and cleaning up the aftermath of the rising yen on the export-driven nation. Half the money will go towards extending consumer energy-saving product subsidy programs, with additional funds towards job support programs for new graduates and incentives for companies to keep jobs within Japan. The package will be paid for with reserve funds in the current budget. The government believes the stimulus package will bring in 200,000 new jobs and raise the nation’s GDP by .3%. A revised report indicates that the GDP had grown at a 1.5% annualized rate between April and June, a notable step up from initial reports that had it at .4%. Though the new number puts Japan on par with U.S. growth rates, it is a sharp fall from the 5% annualized rate from the January-March period.