Japan unveils $120 billion fiscal boost to fight external risks, post-Olympics slump

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Japan unveils $120 billion fiscal boost to fight external risks, post-Olympics slump
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Japan unveiled a $120 billion fiscal package on Thursday to support stalling gro...

TOKYO - Japan unveiled a $120 billion fiscal package on Thursday to support stalling growth in the world’s third-largest economy amid offshore risks and as policymakers look to sustain activity beyond the 2020 Tokyo Olympics.

“We managed to compile a strong policy package,” Abe told a gathering of ruling party lawmakers and government officials on Thursday. Japan’s economy ground to a near halt in July-September as the global slowdown knocked exports. Retail sales also tumbled at their fastest pace in more than 4-1/2 years in October as a sales tax hike prompted shoppers to tighten their purse strings.

In compiling the package, Japan’s heavily indebted government will tap stretched fiscal space to combat overseas risks and the impact of a sales tax hike.

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