12 Jan 2015
Japanese cabinet approves stimulus package, expected to support Japanese economy – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura share that the Stimulus package approved by the Japanese cabinet will not have a major impact, but could nevertheless provide adequate support for Japanese economy.
Key Quotes
“Japanese cabinet agrees FY14 supplementary budget proposals to lend support to economic stimulus.”
“We calculate that the roughly ¥3.5trn economic stimulus package targeted chiefly at provincial regions that the FY14 supplementary funds will boost GDP by about 0.39%. For FY15 alone, we estimate its contribution to GDP at +0.26%.”
“Although the impact of the package itself is likely to be relatively small, we think it will provide tailwinds for the Japanese economy, particularly in terms of consumer spending and exports.”
“We also see a strong possibility of renewed growth in private demand from CY14 Q4. As such, we think an economic stimulus package of around ¥3.5trn will be enough to support the Japanese economy.”
Key Quotes
“Japanese cabinet agrees FY14 supplementary budget proposals to lend support to economic stimulus.”
“We calculate that the roughly ¥3.5trn economic stimulus package targeted chiefly at provincial regions that the FY14 supplementary funds will boost GDP by about 0.39%. For FY15 alone, we estimate its contribution to GDP at +0.26%.”
“Although the impact of the package itself is likely to be relatively small, we think it will provide tailwinds for the Japanese economy, particularly in terms of consumer spending and exports.”
“We also see a strong possibility of renewed growth in private demand from CY14 Q4. As such, we think an economic stimulus package of around ¥3.5trn will be enough to support the Japanese economy.”