Japan's Abe says ready to top up fiscal spending if coronavirus hits economy

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Japan's Abe says ready to top up fiscal spending if coronavirus hits economy
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Japan's Abe says ready to top up fiscal spending if virus hits economy

TOKYO - Japanese Prime Minister Shinzo Abe said on Tuesday his government was ready to deploy further fiscal stimulus measures if needed to protect the country’s already fragile economy from the negative effects of the coronavirus.

The outbreak comes at a critical time for Japan, raising the specter of a potential second quarter of negative economic growth just as the country prepares to host the summer Olympic Games in July and August. Abe’s remarks came a day after Bank of Japan Governor Haruhiko Kuroda signaled the central bank’s readiness to stabilize markets if necessary.

Abe’s administration has been reluctant to sign off on fresh spending before the budget formally passes parliament, for fear of drawing criticism that its existing spending plan was insufficient to prop up the economy.

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