Japan Banker: Plan May Not Help
May. 25, 1998
TOKYO (AP) _ Bank of Japan Gov. Masaru Hayami said Monday he is unsure whether a 16 trillion yen ($121 billion) economic stimulus package will be enough to put Japan's economy on the road to recovery.
Hayami said the government's economic stimulus plan announced last month addresses critical issues such as revitalizing land transactions and should have a positive effect on the economy.
But, speaking before a session of Parliament, he added that even though the package is Japan's biggest ever, it may not be enough.
``We cannot say for sure that it will further strengthen the economy enough to spur a recovery trend,'' he said. ``We need to monitor whether the measures will restore confidence.''
Japan's economy has been stagnant for most of the past decade. With much of the Asian region in the doldrums as well, Tokyo has been under increasing pressure to take some sort of action to bring it back to life.
The government has insisted the package will help it keep to its goal of 2 percent growth, but many economists have expressed doubts and polls suggest business sentiment remains gloomy.