QNB rules out significant boost to Japanese economy from new stimulus package

Doha, Qatar: QNB ruled out that the new economic stimulus package will create a major change in Japan s economic growth trends, expecting growth to sl...

Doha, Qatar: QNB ruled out that the new economic stimulus package will create a major change in Japan’s economic growth trends, expecting growth to slow to 0.6% annually during 2026-2027, compared to the 1.1% growth forecast for this year.

In its weekly report, the bank noted that Japan has entered a new phase of economic policy following Sanae Takaichi’s assumption of leadership as Prime Minister, the first woman to ever hold the position.

It pointed out that Takaichi has pledged to revive Japan’s economic growth by adopting what she called a responsible, proactive fiscal policy.

The report said that this policy aims to strike a delicate balance between allocating spending to strategic sectors and maintaining financial sustainability, while controlling Japan’s very large public debt.

In this context, the bank said that boosting growth in Japan is a difficult task for a country facing significant structural challenges and uncertain global outlooks.