ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

Abe seeks stimulus for post-disaster, post-Olympics growth

Tokyo to ready billions of dollars for dams, levees and cash-back programs

Prime Minister Shinzo Abe chairs a meeting with business leaders on regulatory reform Oct. 31. (Photo by Uichiro Kasai)

TOKYO -- Prime Minister Shinzo Abe is set to call for stimulus measures to prop up an economy battered by a string of natural disasters and sustain growth past next year's Tokyo Olympics, Nikkei has learned.

With the global economy showing signs of slowing amid the trade war and uncertainty over Brexit, Abe hopes to ensure the economy will keep humming with an injection of government spending.

In light of the super typhoon in October that left a trail of destruction across eastern Japan, Abe's government has made rebuilding stricken areas and improving disaster mitigation infrastructure a priority.

Proposals include reassessing levees, dams and other flood controls and strengthening them as needed.

Japan's budget topped 100 trillion yen ($918 billion) for the first time in fiscal 2019, reaching an unprecedented 101.5 trillion yen as the government spent to brace the economy against this October's consumption tax hike.

The fiscal 2020 figure looks likely to remain above 100 trillion yen as social welfare costs continue to rise.

The government will revamp a 7 trillion yen plan to prepare infrastructure for natural disasters over three years through fiscal 2020.

Japan wants to expand the program to include assistance for farmers sustaining more than 100 billion yen of damage from typhoons, as well as subsidies granted to smaller manufacturers and other businesses. It wants to prevent affected areas from losing their reputation in tourism.

Tokyo is also looking to bolster Japan's growth potential beyond the summer Olympics in 2020.

To sustain consumer spending, the government will consider expanding the cash-back program for purchases made with credit cards or e-money. An average of 1 billion yen a day has been returned to consumers under the program, which could run out of money. In addition to adding to the program's coffers, the government will consider extending the program beyond the end date of next June.

The government is also set to unveil measures to support farmers in light of the trade pact agreed to with the U.S., based on its estimate that domestic production of agricultural, forestry and fisheries products will be reduced by 60 billion to 110 billion yen. Anticipating increased imports of beef, pork, dairy products and other goods from the U.S. on lower tariffs, the government will draw up measures to strengthen the competitiveness of Japan's livestock and related distribution businesses.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more