Kishida says Japan to craft new economic package by end of April

Speaking at a parliamentary session, Kishida said he will instruct his ministers Tuesday to draw up a package to ensure the economy recovers from the COVID-19 pandemic and to minimize the effects of rising prices on people's livelihoods.

Calls have grown within the ruling coalition for the government to take further steps to ease the pain increasingly felt by Japanese consumers, with the yen's recent weakness magnifying the impact by raising import costs.

Kishida said earlier the pandemic and surging prices following Russia's invasion of Ukraine were a «double whammy» for Japan.

«We must take steps with agility to ensure a recovery in economic and social activities from the pandemic and address the impact of surging crude oil and other prices due to the situation in Ukraine,» Kishida told a session in the House of Councillors.

«We are entering a critical phase in reviving an economy damaged by COVID-19,» Kishida said.

Japan is now free of antivirus restrictions for the first time since early January after a quasi-state of emergency ended on March 21 in 18 prefectures including Tokyo and Osaka.

As Japan has enacted a record 107.60 trillion yen ($874 billion) budget for the new fiscal year from April, Kishida said the first priority is to execute the spending plan and tap the remaining reserve funds set aside for emergency spending.

Last week, Kishida announced an extension of subsidies for oil wholesalers to drive down retail prices, by one month to the end of April.