Japanese government gives the green light to ¥18.6T stimulus package

FXstreet.com (Łodź) - Japan's cabinet adopted a 18.6 trillion yen stimulus package on Thursday with the aim of softening the blow of the upcoming consumption tax increase to the economy.

The tax rise to 8% from the current 5%, announced by Prime Minister Shinzo Abe at the beginning of October, will be implemented in April next year.

The package includes 5.5 trillion yen in state spending, which will be alloted to improving corporate competitiveness and to disaster and safety measures. The rest of the funds is earmarked for private and local government expenditures.