Japan’s Suga Doubles Down on Travel Bet in $700 Billion Package

Japanese Prime Minister Yoshihide Suga doubled down on his bet that promoting domestic travel will ensure the economy stays on a recovery path and that his tenure as premier will continue beyond a single year.

Despite a resurgence in Covid-19 infections that some observers have blamed on Suga’s Go-To-Travel campaign, the government on Tuesday unveiled a six-month extension of the measure as part of an economic stimulus package with an overall value of more than $700 billion.

The latest package, to be funded by a third extra budget and next year’s annual budget, also extends an enhanced furlough program, provides support for medical facilities and homes for the elderly, and cash handouts for single parent families, as Japan adds to an IMF tally of $12 trillion in global stimulus this year.

The package also looks to shore up corporate cash flows, and promote the development of green and digital technology, two areas that Suga is looking to make central themes of his tenure.