Japan is rolling out another round of stimulus to revitalize its economy.
Prime Minister Yoshihide Suga asked his cabinet Tuesday to come up with innovative measures to accelerate the country's recovery following the disruptions caused by the coronavirus pandemic.
Economy Minister Yasutoshi Nishimura said in a news conference that stimulus packages will soon be introduced. The government is looking to leverage digitalization to boost productivity while also making structural changes in the economy.
"We'll want to consider government spending that will attract private investment," Nishimura said.
Exact details about the planned stimulus measures, including amounts to be distributed for various packages, have not been decided. However, the ruling party has been calling on the release of between $95 billion to $286 billion for new measures.
Japan's economy has rebounded at a quicker pace compared with other countries. The nationwide state of emergency declared over the first few quarters crippled economic activity. However, the country saw a sharp rebound during the third quarter. Exports and output increased over the three-month period, fueled mainly by the rise in overseas demand for Japan-made products.
During his news conference, Nishimura said part of the planned stimulus would focus on supporting Japan's shift to a "green" society. This will include support for companies to help the country achieve its goal of being a zero-emission nation by 2050.
Some analysts say the government needs to be more restrained in its spending as further lavish expenditures could strain the nation's struggling finances.
"The additional budget should be spent on selected areas where necessary, rather than cash handouts to everyone that the government did previously," economists at the Japan Research Institute said.
Over the course of the pandemic, Japan has spent a combined $2.2 trillion over two packages. The funds were mainly used to provide Japanese households with cash payments and businesses with small loans.