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Economy

Japan spends just fraction of US and Europe on post-COVID economy

Tokyo's short-term budgeting goes small on climate change and development

Analysts warn that Japan risks becoming less competitive with its timid budgeting for climate change and new technologies.   © Reuters

TOKYO -- As the U.S. and Europe ready robust spending plans to transform their economies in the wake of the coronavirus pandemic, Japan is instead taking a far more modest approach that lacks a blueprint for the future, an approach that possibly threatens its global competitiveness.

The American Jobs Plan proposed by President Joe Biden calls for spending $2 trillion over eight years to build infrastructure and combat climate change, though any such legislation remains under negotiation in Congress. The European Union looks to spend 1.8 trillion euros ($2.1 trillion), a sum that includes a coronavirus recovery fund.

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