Japan Unveils $135 Billion Economic Stimulus to Counter Inflation and Boost Technology

On November 21, 2025, the Japanese government sanctioned a comprehensive economic stimulus package valued at 21.3 trillion yen, equivalent to approximately US$135 billion, aimed at supporting the nation’s economy amid ongoing inflationary pressures and challenges posed by US tariffs.

The initiative earmarks 11.7 trillion yen for measures intended to alleviate inflation, including tax incentives, while designating 7.2 trillion yen for strategic investments in key industries such as semiconductors, artificial intelligence, and shipbuilding.

To fund these initiatives, the government will prepare a supplementary budget totaling 17.7 trillion yen from its general fund, surpassing the fiscal 2024 supplementary budget of around 13.9 trillion yen, and setting a new record for post-pandemic economic support. The exchange rate at the time stood at roughly 157.3 yen to one US dollar.

This stimulus package reflects Japan's commitment to fostering economic resilience through targeted fiscal measures and innovation-driven growth amid global economic uncertainties.