Abe, warning of the risk of a new crisis, plans big stimulus package

May 29, 2016World Leaders in AIWS Award Updates

(May 30th, 2016) After warning  at the G7 Summit that the global economy faces the risk of another crisis like that of 2008-2009, Japanese Prime Minister Shinzo Abe plans to propose a fiscal stimulus package of as much as $90.7 billion to help ward it off, Nikkei, the Japanese newspaper, and Mint, the Indian newspaper, reported. 


Proposals will include accelerating building a magnetic-levitation train line from Nagoya to Osaka, issuing vouchers to boost consumer spending, increasing pay for child-care workers and setting up a scholarship fund.

“When you want to get the economy going, as long as demand in Asia is weak, you need additional public spending,” Martin Schulz, a senior economist at Fujitsu Research Institute in Tokyo, told Mint by phone. “Since private spending is still not picking up, the government is simply taking up the slack.”