Japan Launches $120 Billion Stimulus Package

In response to sluggish economic growth and deflationary pressures, Japan unveiled an expansivefiscal stimulus package valued at $120 billion on August 1, 2025. The measures prioritize infrastructure development, technological innovation, and direct consumer incentives aimed at sparking demand and revitalizing the economy.

The stimulus is seen as a decisive policy shift meant to counterbalance external trade headwinds and domestic vulnerabilities. The Japanese yen depreciated slightly on the announcement, reflecting investor expectations of increased government spending and potential fiscal deficits. Key components include substantial investments in digital technologies and environmentalsustainability.

Observers believe this package will provide significant economic support, though concerns remainabout long-term fiscal health given Japan's existing debt levels. The stimulus highlightsgovernment resolve to safeguard economic stability amid complex global uncertainties and changing market dynamics.