By MALILA Harris
JAPAN NEWS - Under the pressure of declining economy, Japan's parliament has passed a stimulus package worth about $61bn (£39bn) to accelerate the growth. The stimulus was aimed to create jobs and to help small businesses, impelling consumers to spend more.
To kick-start the fragile economy the Japanese government has already started many recovery packages. The economic figure shows that Japanese consumer prices fell for the 20th month in a row in October.
It was indeed a tough task to get stimulus package to pass through the parliament. The latest stimulus package also represents a victory of the government who is struggling with the economy and opposition criticism as well.
Unlike European government's policy that largely focus on cutting spending to secure growth, Japanese government planned a contrasting policy that gives more opportunity to consumers to spend and eventually growth in economy.
Presently, Japan has been suffering from weak economic growth with yen value rises and a steep deflation. The core consumer price index fell by 0.6% in October compared with a year earlier. However, in September it recovered a bit with 1.1% price falls.
Deflation is damaging the economic growth because of apprehension of consumers to spend or delay. The slight improvement in September, though not reflected on consumer demand.
"Even though the pace of the fall in prices slowed by 0.5 percentage points, this was not due to an improved demand-supply balance," said Asushi Matsumoto at the Mizuho Research Institute.
Figures released Thursday showed the rapid fall in export growth.
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