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Japan Approves $135 Billion Stimulus Package Amid Rising Inflation

Japan Approves $135B135 Billion Stimulus Package Amid Rising Inflation

Japan Approves $135 Billion Stimulus Package Amid Rising Inflation
Above: **Watermarked Getty Image. Kindly Replace** Japan's Prime Minister Sanae Takaichi at the Prime Minister's office in Tokyo on Friday. Image credit: Stringer/Jiji Press/AFP/Getty Images

The Spin

Japan'sThis massive $135 billion stimulus package is fiscal recklessness that threatens to trigger a devastating bond and currency crisis. With debt already at 240% of GDP and inflation above target, pumping more money into the economy will send interest rates soaring and the yen plummeting further.

The stimulus package represents responsible fiscal policy designed to protect citizens from rising prices while building a strong economy. Strategic spending on energy subsidies and tax cuts will stabilize inflation and boost GDP growth by 1.4% annually over three years.

Metaculus Prediction

There is a 91% chance India's nominal GDP will surpass Japan's by the end of 2025, according to the Metaculus prediction community.


The Controversies



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© 2025 Improve the News Foundation. All rights reserved.Version 6.18.0

© 2025 Improve the News Foundation.

All rights reserved.

Version 6.18.0