Japan's government announced a larger-than-expected stimulus package of 26 trillion yen (1.68 trillion yuan) Tuesday to stave off a post-2020 recession after the Tokyo Olympics.


According to Japanese media reports, under the plan approved by Abe's government on Friday, the public sector will spend about 13.2 trillion yen, and the total value of the stimulus plan will reach 26 trillion yen, combined with the input of private enterprises. This is the second time in three years that the Abe administration has doled out large amounts of government money to prevent a recession.


Can the three key points reverse the low economic growth?


The plan has three main priorities, including strengthening infrastructure for post-disaster reconstruction, preparing for the risk of recession and boosting the economy after the Tokyo Olympics in 2020, the report said.


"This is the first economic package of the era," prime minister shinzo Abe told a conference on the economic response. "the theme is to start a Japan that can sustain growth. We will implement a strong economic response that will not only focus on disaster prevention, but also ensure that the Japanese economy does not retreat. After the Tokyo Olympics, it's also about maintaining the momentum of the Japanese economy and making investments for the future."


In line with the focus of this recovery, Japanese authorities plan to focus government projects on rebuilding the disaster areas and improving disaster prevention measures.


This comes after a powerful typhoon hit several parts of Japan, destroying many flood defences. As such disasters continue unabated in the future, the authorities plan to spend y6, 000bn on strengthening infrastructure. The projects include rebuilding flood defences, improving power supplies and underground power lines.

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In preparing for the risk of recession, the Japanese authorities will introduce preferential policies to let the private sector and businesses feel the economic momentum.


For example, after the entry into force of the japan-us trade agreement, a large number of us agricultural products will inevitably bring new challenges and pressures to Japanese farmers. The administration intends to carry out agricultural reform with preferential policies during this transitional period to prevent the agricultural sector from shrinking during the reform process.


The government is confident of boosting gross domestic product by about 1.4 percentage points through the plan, according to NHK.


But while Japanese investors generally support the plan, hirosuke shimita, an economist at the Japan institute of research, warned that it would have a limited effect, benefiting only infrastructure-related companies and not fully reversing the country's sluggish growth.


[set up a special fund to promote high-tech r&d]


As for sustainable development after the Tokyo Olympics, Japanese authorities will allocate funds for Japanese companies to open new businesses and create new jobs. The government plans to set up a y360bn research and development fund to promote the development of new technologies, including helping companies develop post-5g technology.


In addition, the government will assist the auto industry to further develop automated vehicle technology. According to reports, the exploration of aerospace technology is another priority for the Japanese government to invest in a new generation of industries.


Mr Abe is said to have launched the second of five stimulus packages since taking office in 2012, after y28.1tn three years ago.