FX.co ★ Japan Rolls Out JPY 21.3 Trillion Economic Boost

On Friday, Japan's parliament approved an ambitious economic stimulus package valued at JPY 21.3 trillion. This initiative is designed to bolster the economy in response to ongoing inflation and the repercussions of U.S. tariffs. The package designates JPY 11.7 trillion, including tax incentives, to alleviate the strain of escalating prices. Additionally, JPY 7.2 trillion is earmarked for investment in strategic sectors like semiconductors, artificial intelligence, and shipbuilding. To support the funding of these measures, the government intends to assemble a supplementary budget of JPY 17.7 trillion from its general account. This amount exceeds the approximately JPY 13.9 trillion earmarked for the fiscal 2024 supplementary budget, establishing a post-pandemic record high. Lawmakers are expected to finalize the supplementary budget later this month.