Amid talks around the compilation of the third additional budget, Yoichi Takahashi, one of the six new economic advisers to Japanese Prime Minister Yoshihide Suga, has said that the government needs to spend 40 trillion yen ($ 384 billion) in its third additional budget to combat the hit to the economy caused by the coronavirus pandemic.
Key Comments (via Bloomberg):
“The stimulus plan being drawn up now it should be more than twice the size expected by investors if massive job losses and thousands of suicides are to be avoided“.
“The number may surprise people, but in theory it is necessary“.
“We need put out the fire before it spreads to more places. “
“The current output gap means that more than a million people will lose their jobs in six months if nothing is done“.
“The math shows that that would lead to around 6,000 suicides.”