Japan announces stimulus as yen plunges

Japan’s Ministry of Finance said on Sunday it plans to inject nearly ¥11 trillion ($90.3 billion) into an economy that contracted in the third quarter. Japan’s finance ministry on Sunday (3 December) said it plans to inject nearly ¥11 trillion ($90.3 billion) into an economy that contracted in the third quarter. The planned fiscal stimulus comes after Japan’s biggest-ever corporate tax cut was implemented and as the yen plunged to a 13-month low against the dollar. The latest action raises the government’s forecast for gross domestic product growth to 1.5% in the current fiscal year, ahead of expectations for 1.3% growth, the finance ministry said. The economy shrank an annualised 1.5% in the July-September period, following a revised 3.3% contraction in the second quarter. That reduced the year-on-year gain to 0.5%, compared with a revised 3.1% increase in April-June. Official preliminary data will be released later this month. The latest stimulus will come after Japan’s biggest-ever corporate tax cut was implemented and as the yen plunged to a 13-month low against the dollar. The planned fiscal stimulus comes after Japan’s biggest-ever corporate tax cut was implemented and as the yen plunged to a 13-month low against the dollar. The latest action raises the government’s forecast for gross domestic product growth to 1.5% in the current fiscal year, ahead of expectations for 1.3% growth, the finance ministry said. The economy shrank an annualised 1.5% in the July-September period, following a revised 3.3% contraction in the second quarter. That reduced the year-on-year gain to 0.5%, compared with a revised 3.1% increase in April-June. Official preliminary data will be released later this month.

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