Suga to Resign without Achieving Economic Recovery
Tokyo, Sept. 7 (Jiji Press)--Japanese Prime Minister Yoshihide Suga will step down without achieving economic recovery despite huge fiscal and monetary stimulus triggered by the novel coronavirus crisis.
Suga took steps to promote digitalization and decarbonization. But he failed in efforts to balance coronavirus measures and economic activity utilizing the policy mix of massive monetary easing and fiscal spending that he took over from former Prime Minister Shinzo Abe.
The country's annualized real gross domestic product for April-June stood at 538 trillion yen, lower than the 546 trillion yen marked in October-December 2019 before the coronavirus outbreak.
Although the government hopes to boost the economy to prepandemic levels by this year's end, sluggish personal consumption due to the coronavirus state of emergency, especially in the dining and tourism sectors, is making the outlook unclear.
In December last year, the Suga administration compiled the third supplementary budget for fiscal 2020 including 19.2 trillion yen for additional economic stimulus measures.
[Copyright The Jiji Press, Ltd.]