Japan's First Female PM Unveils Major Economic Stimulus Package

Japan's new Prime Minister Sanae Takaichi is crafting a potentially record-breaking economic stimulus package to combat inflation, boost growth industries, and enhance national security. The package reflects her proactive fiscal policy, focusing on investments in AI and semiconductors, countering inflation, and supporting small businesses.

Japan's newly appointed Prime Minister, Sanae Takaichi, announced she is preparing a significant economic stimulus package potentially surpassing $92 billion. This move aims to combat inflation, encourage investment in growth sectors, and strengthen national security, according to government insiders.

This fiscal strategy marks Takaichi's first major initiative, aligning with her campaign promises of responsible fiscal policy. The measures will include abolishing the provisional gasoline tax rate and expanding grants for local governments to aid small and medium-sized enterprises.

With investors keenly observing Takaichi's plans, Japan's economic landscape faces uncertainties as the government considers introducing deficit-covering bonds. The upcoming supplementary budget could further influence economic dynamics amid ongoing efforts to balance growth with fiscal responsibility.

(With inputs from agencies.)