7 Apr 2009

Japan reveals scope of economic stimulus plan

8:02 am on 7 April 2009

Japan plans another stimulus package worth $US100 billion or more to rescue Asia's biggest economy from its worst crisis since World War II.

Prime Minister Taro Aso instructed Finance Minister Kaoru Yosano to plan public spending worth at least 2% of gross domestic product (GDP), Mr Yosano says.

Mr Aso first announced the new spending plan last month, but did not say at the time how much it would be worth.

It would be the third stimulus package since last October to pump up the Japanese economy, which logged its worst performance in almost 35 years in the last quarter of 2008, contracting at an annualised pace of 12.1%.

The government has described the economic crisis as the worst since World War II.

The new package is expected to include measures to help laid-off workers, to help cash-strapped companies secure access to credit and to encourage greater use of solar energy technologies.

It adds to $US119 billion in spending planned under previously announced stimulus measures.