Japanese Prime Minister Yoshihide Suga wearing a mask announced Thursday that Japan is on maximum alert as the nation sees record numbers of new coronavirus cases. Japan reported more than 2,000 new cases, the highest yet, on Wednesday. Photo: thepaper.cn

Japan announced a fresh $708 billion economic stimulus package on Tuesday to speed up the recovery from the country's deep coronavirus-driven slump, while targeting investment in new growth areas such as green and digital innovation.

The new package will include about 40 trillion yen ($384.54 billion) in direct fiscal spending and initiatives targeted at reducing carbon emissions and boosting adoption of digital technology, Prime Minister Yoshihide Suga said in a meeting with ruling party executives.

Policymakers globally have unleashed a wall of monetary and fiscal stimulus to prevent a deep and prolonged recession as coronavirus closed international borders and sent millions out of work. In the US, a $908 billion coronavirus aid plan is currently under debate in Congress.

In Japan, the pandemic has forced the government to put its fiscal reform agenda on the back burner, despite holding the industrial world's heaviest public debt burden, which is twice the size of its gross domestic product.

"We have compiled the new measures to maintain employment, sustain business and restore the economy and open a way to achieve new growth in green and digital areas, so as to protect people's lives and livelihoods," Suga said at the meeting.

Suga's cabinet is expected to set to endorse the stimulus package later on Tuesday, which would bring the combined value of coronavirus-related stimulus to about $3 trillion.

Reuters