This archive report was first published on 5 December 2019.
On Thursday, Japan's Prime Minister Shinzo Abe unveiled a $120 billion stimulus package to stimulate the country's slowing economy, which has been impacted by Typhoon Hagibis and a weakening global economy.
The package, worth over 13 trillion yen, aims to 'overcome downside risks' and maintain or enhance economic viability after the 2020 Olympics, which Tokyo will host next summer.
Japan has struggled in recent times due to a slowdown in demand from China, a major consumer of Japanese-made assembly line equipment, and a political spat with South Korea that has led Koreans to boycott purchases of Japanese products.
The government expects the stimulus package to lift private-sector spending by up to an additional 13 trillion yen.
The public portion of the package will be financed by government bonds and the country's general account.
Some economists have expressed skepticism about the package, citing concerns that it may not be enough to boost the economy significantly.
However, others have praised the package, saying that it makes sense in almost every regard and that the amount is large but not too large.
The stimulus package is one of Japan's largest allocations of public funds to jump-start its economy, and it will push up Japan's debt level, which is currently more than two and a half times the nation's total annual economic output.
