The government of Japan will provide a fresh economic stimulus worth $708 billion to bolster economic recovery from the pandemic while targeting investments in the green tech sector, media reports said. The latest move by the government marks the country’s third stimulus package this financial year.
The latest stimulus announcement comes after the country faces a spike in Covid-19 infections.
It is reported that the fresh stimulus package includes actual government spending worth ¥ 40 trillion and loan schemes. Furthermore, the stimulus package will provide financial assistance for healthcare facilities and treatment for the senior citizens, and subsidies to the domestic travel supporting travel-dependent businesses.
The stimulus package will also provide funds worth $20 billion to the clean tech segment to support projects from renewable energy development to curbing pollution.
Prime Minister Yoshihide Suga, told the media, “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.”
Yoshihide Suga said that Japan is expected to become carbon neutral in 2025, significantly ramping up the country’s ambition towards green tech goals. Yoshihide Suga has announced such a stimulus for the first time since joining the office.
The pandemic has battered the global economy forcing governments to introduce massive cash injections. It is reported that Japan’s economy will rebound 3.7 percent next year and get back to pre-pandemic levels in Q3, sooner than the US