Japan stimulus payments went to savings, not spending

Money failed to boost consumer spending as planned

20210511N Tokyo seafood market

A seafood market in Tokyo. Much of the money meant to stimulate consumer spending was saved instead. © Reuters

YOHEI MATSUO, Nikkei staff writer

TOKYO -- The stimulus payments granted to every eligible Japanese resident last year did not provide a lift to consumer spending, the latest data shows, as much of the money went into savings.

The 100,000-yen ($918) payments lifted disposable income by 4% in real terms in the fiscal year ended in March, the Ministry of Internal Affairs and Communications reported Tuesday.

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