Japan Approves 17 Trillion Yen Stimulus Amid Economic Challenges
Japan has unveiled a massive 17 trillion yen stimulus package to combat its deepening economic crisis. The Takaichi government's MOVE comes as the nation grapples with labor shortages, aging demographics, and stalled investments—factors threatening to derail Asia's second-largest economy.
Corporate closures reached 309 in 2024 alone, with businesses unable to secure qualified staff. The hospitality sector's paltry 20,000 yen per employee investment pales against the 450,000 yen average across other industries. Major infrastructure projects face delays until 2036 due to workforce deficits.
This fiscal intervention, funded through a 14 trillion yen supplementary budget, represents Tokyo's most aggressive economic response in decades. Yet questions linger about its efficacy against structural headwinds that monetary policy alone cannot address.
