Japan stands ready to pump more money into the economy to ease the pain of a prolonged pandemic, the top government spokesman said on Sunday, nodding to growing political calls for additional stimulus to prop up growth.
Less than two weeks before hosting the Olympics, Tokyo goes into its fourth COVID-19 state of emergency from Monday through Aug. 22, fuelling fears of extended pain for restaurants hit by shorter hours and a ban on alcohol consumption.
"Then we want to flexibly take economic measures without hesitation," Kato said, without mentioning the size or timing of further stimulus measures. Government spending is constrained by public debt at 2.5 times Japan's annual economic output - the heaviest debt burden in the industrial world, inflated by massive stimulus packages rolled out over the past year.
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