— Japan Govt: Yen Package Estimated to Push Up GDP By 0.5% Pt
TOKYO (MNI) – The Japanese government on Friday officially proposed
a Y2 trillion new fiscal spending package to help ease the pain
inflicted by the yen’s rise on exporters and their subcontractors.
This measure is estimated to boost Japan’s real gross domestic
product by 0.5 percentage point and create 300,000 new jobs, it said in
a statement.
The package will be included in the third supplementary budget for
fiscal 2011 worth Y12.1 trillion, which needs parliamentary approval.
Of the Y2 trillion, Y1.1 trillion will be spent on measures
designed to alleviate the impact of the yen’s rise to record high
levels, and the rest — Y0.9 trillion — will be used to create an
economic structure that can better withstand the drag from foreign
exchange fluctuations.
The package includes financial aid to small businesses worth Y600
billion and subsidies for Japanese companies that build domestic plants
totaling Y500 billion amid fears that the strong yen will prompt more
firms to relocate production bases overseas.
tokyo@marketnews.com
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