🇯🇵🎯 JAPAN APPROVES MAXI STIMULUS OF 118 BILLION: BULLISH FOR MARKETS 🎯🇯🇵
Japan has approved a supplementary budget of 18.3 trillion yen (118 billion dollars), the largest stimulus package since the Covid era, aimed at financing a comprehensive program of 21.3 trillion yen launched last month.
This extra budget far exceeds last year's 13.9 trillion yen, marking a clear expansive turn under the leadership of Prime Minister Sanae Takaichi.
Most of the resources will come from new debt issuances, in a country that already has the highest debt-to-GDP ratio among major economies, around 230–250%.
The package funds energy subsidies, cash transfers to families, and incentives for investments in strategic sectors such as semiconductors and artificial intelligence, along with an additional increase in defense spending to bring it towards 2% of GDP, also in response to growing Chinese military pressure in the region.
Despite the ruling coalition not having a majority in the upper house, support from part of the opposition allowed for the final approval.
After the approval, Takaichi bowed deeply in the chamber, reiterating that the government will implement "strategic fiscal spending to protect the standard of living of the people and build a strong economy."
For global markets, it is a new signal of additional liquidity, the stimulus of 118 billion dollars injects global liquidity, supports risk assets such as stocks and crypto, favoring potential rallies in the markets.
