Japan approves $135-billion economic stimulus package

Japan’s Cabinet approved a $135.4-billion stimulus package Friday to help spur the economy through expansionary government spending and to relieve the impact of higher prices.

- BY MARI YAMAGUCHI

THE BENCHMARK Nikkei 225 stock index has taken a hit recently from renewed friction with China.

(Eugene Hoshiko Associated Press)

After taking office last month, Prime Minister Sanae Takaichi promised to boost government spending despite concerns that such moves would delay progress on trimming Japan’s national debt, which is about triple the size of its economy.

Takaichi told reporters that the package aims to quickly deliver on her promises.

“Through wise spending, we will change worries into hope and achieve a strong economy,” she said.

“What we should do now is to strengthen the national power through expansionary spending, through wise spending, and not to cause harm through excessively contractionary policies,” she said.

The spending package far exceeds those of the pre-COVID-19 pandemic years and is also meant partly to blunt the impact of higher U.S. tariffs on Japanese exports to America under President Trump.