Japan doubles planned recovery budget to $5 bn.

9 years ago by in Featured, Japan

A budget of more than $5 billion is being planed by the Japanese government in order to help the economy, whose recovery is getting slower, according to sources cited by Kyodo news agency.

This is double the amount which was previously planned, of $2.5 billion.

The new financial package may be approved on Friday, the cited sources said.

Part of the budget could be addressed to helping smaller businesses affected by the natural disasters.

The Japanese economy is confronting several large-scale problems. After last year’s natural disasters which disrupted supply chains and hit internal demand, the global crisis continued to cut into export demand.

Japan’s economy is dependant on exports and is experiencing additional pressure from a strong national currency that further cuts into overseas revenues.

A ballooning public debt and aging population are additional risks to Japan’s troubled economy.