The fiscal support provided by Japan’s government had started to look small compared to other large economies but PM Suga this week hinted that more spending is forthcoming. While the government has indicated that it will first exhaust its COVID-19 reserve fund, that fund was already included in the supplementary budgets earlier this year and won’t move the needle on the overall size of the fiscal response. We think policymakers will instead opt for a genuine increase in fiscal support as early as next month.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services