JAKARTA (TheInsiderStories) - Japan’ economy grew an annualized 22.9 percent in the third quarter of 2020, revised data from the Cabinet Office showed on Tuesday (08/12). The data showed the world’ third largest economy rebounded from a COVID-induced recession and its worst postwar contraction in the second quarter.
“Today, we finalized the action plan for the growth strategy,” said the prime minister in an official statement.
To support the economic recovery, Prime Minister Yoshihide Suga, has released a fresh economic stimulus package worth of JPY73.6 trillion (US$734.59 billion) followed a combined $2.2 trillion from two previous packages that focused on dealing with the immediate strain on households and business. The stimulus included fiscal spending around JPY40 trillion. He said, the government is set to finalize the stimulus package today.
According to him, the greatest issue facing by Japanese companies is increasing productivity. By implementing all the possible measures to towards this end and distributing the fruits of effort to the workers, he hope will continuously improve the income level of the people and realize a virtuous economic cycle.
In detailed, his government will run a green growth strategy towards achieving carbon neutrality by 2050 is included in this plan. He stated, “Going forward, we intend to support, as a national project, the development of new technologies by private sector companies that are working on revolutionary innovations.”
Suga said, the government will draft a concrete plan that specifies the term goals in the green sector before the end of the year. Then, the action plan outlines support for reform efforts being implemented by companies towards the ‘post-corona’ world.
“In order to facilitate labor mobility to new areas while protecting employment, we intend to advance measures such as providing supports to trial employment and clarifying the rules on temporary transfers of employees to other firms. We also support companies advancing digital transformation of their business models with taxation measures,” he asserted.
At the end, the plan aims to solidify the business foundations of small- and medium-sized enterprise (SMEs) by giving certain subsidy and financial support measures for them. The government also aimed to strengthen the partnership between major companies and SMEs.
“The ministries and agencies will work as one to implement the items indicated in this action plan, starting from those that we can work on immediately. I ask the expert members to continue engaging in lively discussions and raising points,” he concluded.
US$1: JPY104.08
