Japan approves over $275b in fresh economic stimulus
TOKYO (AP) - The Japanese Cabinet has approved a fresh stimulus spending of more than 20 trillion yen (S$275 billion), rushing to fulfill campaign pledges to break the world's third-biggest economy out of its deflationary slump.
Prime Minister Shinzo Abe announced the decision on Friday at a news conference where he said the new measures were intended to add 2 per cent to Japan's economic growth and contribute 600,000 new jobs.
Mr Abe urged the central bank to move more aggressively to encourage lending and meet a clear inflation target.
He took office late last month after a parliamentary election victory by the Liberal Democratic Party (LDP), which is touting public works spending and subsidies to strategically important sectors as part of its plan to pull the economy out of recession.