Japan Will Allocate Another $83 Billion To Combat The Effects Of Coronavirus On The Economy
The Japanese government will allocate an additional 8.9 trillion yen ($83 billion) to combat the effects of the coronavirus, the Financial Times reported, citing knowledgeable sources.
The total size of the economic support package, including loan guarantees, will grow from 108.2 trillion yen to 117.1 trillion yen. The increase in the amount is almost entirely due to the decision taken earlier to provide financial assistance to the population.
Last week, Prime Minister Shinzo Abe promised that the government would give 100,000 yen in cash to every Japanese person (about $930), regardless of their income level, to support citizens in this difficult situation.
The original plan called for payments of 300,000 yen, but only to 13 million households that were significantly affected by the effects of the coronavirus pandemic.
Earlier, Abe officially approved a state of emergency until May 6 in seven prefectures of Japan, including Tokyo.
Details of the financial assistance program have not yet been disclosed. Abe promised that the government would do everything possible to ensure that people received the money as soon as possible.
Statistics released on Monday indicated a sharp drop in Japanese exports in March 2020. The index declined at the highest rate since July 2016, amid a slowdown in economic activity around the world due to the pandemic. It fell 11.7 percent from the same month the previous year to 6.36 trillion yen ($59 billion), the Finance Ministry said. Analysts on average predicted a decline of 10.1%, according to data from Trading Economics.
Japanese imports fell by 5% last month, to 6.35 trillion yen, while economists had expected a 9.8% drop. Imports have declined for 11 consecutive months.