Economics
Japan’s $707 Billion Stimulus Hinges on Elderly Spending Money
- Halting of ‘Go To’ travel campaign will slow recovery for now
- Over-65s account for almost 40% of private consumption
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Japanese Prime Minister Yoshihide Suga has briefly put virus containment ahead of the economy by temporarily halting a nationwide travel campaign aimed at spurring spending among consumers including the elderly.
The septuagenarian premier needs to get more people of his own generation spending if he wants to keep the economy’s recovery on track over the coming months. People over the age of 65 make up 29% of the population and account for almost 40% of the consumer spending that is the biggest driver of Japan’s economy.