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Shinzo Abe, Japan’s prime minister, ordered his cabinet to design a package of stimulus measures to beef up the economy and build infrastructure to cope with large natural disasters, according to a Japanese government spokesman.
Chief Cabinet Secretary Yoshihide Suga said the package will include steps to promote investment for growth through the aggressive use of fiscal investment and loan programs.
Economy Minister Yasutoshi Nishimura said after a cabinet meeting they will compile the packages as soon as possible. However, the spending size is still indefinite as it will depend on proposals to be made by various ministries.
“I’ve received an instruction from the prime minister to compile a new economic package to guard against the chance overseas risk may hurt Japan’s economy,” Nishimura said.
Abe had asked his cabinet to act against intensifying global risks as Japan’s economy heavily relies on exports.
However, some economists say additional infrastructure works would further strain Japan’s finances.
Abe faces a challenge of striking a balance between boosting economic growths and fixing public debt woes of the industrial sector.
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