Abe’s Resignation May Delay Economic Measures

Politics

Tokyo, Aug. 28 (Jiji Press)--As Japanese Prime Minister Shinzo Abe announced a decision Friday to step down, concerns grew over a possible delay in the implementation of a series of economic stimulus measures devised in response to the novel coronavirus crisis.

Abe’s resignation may also affect the government’s relationship with the Bank of Japan, which has worked closely with the Abe administration to prop up the economy and help the country overcome its prolonged deflation.

The Abe administration compiled two supplementary budgets for the current fiscal year, which started in April, to implement economic stimulus measures worth an unprecedented 233.9 trillion yen.

With the new coronavirus outbreak causing an economic slump, the Abe government has been supporting individuals and businesses. Key measures include a scheme to distribute 100,000 yen per person to all residents in the nation and a benefit program for companies.

Despite these measures, Japan’s real gross domestic product in April-June plunged 27.8 pct from the preceding quarter on an annualized basis, logging the steepest drop in the postwar period.

[Copyright The Jiji Press, Ltd.]

Jiji Press