Japan’s Government Optimistic About Latest Fiscal Stimulus Measures?

A recent report on Nikkei indicates that the Japanese government is set to turn more optimistic about its GDP forecast for the next fiscal

Arslan Butt•Thursday, December 17, 2020•1 min read

Japan's Government Optimistic About Latest Fiscal Stimulus Measures?

A recent report on Nikkei indicates that the Japanese government is set to turn more optimistic about its GDP forecast for the next fiscal year on the back of the latest stimulus measures that were announced earlier this week. The government is expected to revise its GDP estimates for the fiscal year starting in April 2021 to 4% from 3.4% estimated previously in July.

However, the real GDP estimate for the current fiscal year ending in March 2021 is expected to be revised even lower. According to the report, the government expects Japan’s economy to contract by 5.5% as per latest estimates, instead of 5% as forecast previously.

The boost in next year’s GDP is expected to be driven by the latest stimulus package worth $707 billion which was announced earlier this month. The new package includes direct fiscal spending as well as increased investment plans for reducing carbon emissions and driving higher digital innovation.

Speaking about the latest round of stimulus measures, Prime Minister Yoshihide Suga observes, “We will maintain employment, keep businesses going, revive the economy and open a path to growth including through green and digital technology. We have compiled the new measures to maintain employment, sustain business and restore the economy and open a way to achieve new growth in green and digital areas, so as to protect people’s lives and livelihoods.”

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.