Japan advances record $490B stimulus for struggling economy

Japan’s Cabinet on Friday approved a $490 billion stimulus package, a record for the country, to support the economy during the ongoing coronavirus pandemic.

The stimulus package still needs approval from the country’s parliament but is likely to pass next month when the legislative body convenes. The package includes dishing out $880 in payments to adults 18 or older, as well as providing financial aid to businesses, The Associated Press reported from Tokyo.

Prime Minister Fumio Kishida said the package would “deliver a sense of security and hope” for Japan. The Asian country’s economy shrank in the third quarter of this year, falling 3 percent in terms of gross domestic product, according to Reuters.

Global supply chain backlogs have greatly disrupted Japan, a major exporting country, and a shortage of semiconductor chips and other parts have hit especially hard for automakers in the country.

Japan recently ended its COVID-19 state of emergency order, which forced restaurants to close early and banned them from selling alcohol.