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(CEP News) - In an effort to address weakening economic conditions, the Japanese government announced plans to deploy an economic stimulus package worth around ¥11.7 trillion.
The plan includes an extra budget worth around ¥2.0 trillion yen and a ¥400 billion guarantee on loans to small businesses and medium-sized enterprises. Talks are current ongoing regarding tax cuts for the fiscal year of 2008, however no concrete decisions have been made. On July 16, the Bank of Japan downgraded its assessment of the economy on the back of consumption being squeezed by higher food and oil prices, according to the bank's monthly report for July. On Aug. 13, second-quarter GDP for the country came in at -0.6% as expected, bringing the yearly GDP deficit to 2.4%, just lower than the consensus forecast of -2.3%. By Erik Kevin Franco,
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with contributions from Megan Ainscow,
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, edited by Nancy Girgis,
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