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TOKYO: Japan on Friday approved an 11 billion dollar stimulus package aimed at helping the export-driven economy tackle deflation and the impact of a surging yen.
The previously announced plan, approved by the cabinet of Prime Minister Naoto Kan, includes initiatives aimed at boosting consumption and creating employment for graduates. It is also intended to provide investment in green industries and offer support for small business.
The fresh stimulus package of 915 billion yen (10.9 billion dollars) will be financed by reserve funds, and is expected to lift the country's gross domestic product by about 0.3 per cent, creating around 200,000 jobs.
The plan also specifies a strong yen as "a problem that cannot be unaddressed", stating that the government "will take determined action, including intervention, when needed."
The government looked to increase pressure on the Bank of Japan to take additional monetary easing measures by saying it "expects the central bank to take further necessary policies."
The central bank recently expanded a multi-billion dollar loan scheme in a bid to help the economy combat the impact of a strong yen, which hit fresh 15-year highs against the dollar this week.
Revised data Friday showed that Japan's gross domestic product grew by an annualised 1.5 per cent in the April-June quarter, well above an initial estimate of 0.4 per cent.
-AFP/wk
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