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FACTBOX - Stimulus exit plans for Asia-Pacific's big 5 economies

Tue Nov 3, 2009 11:11am IST
 
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Reuters - Fast-paced growth has seen Asian economies outpace their global counterparts in recent months, raising the question of when more than a trillion dollars of emergency stimulus money deployed to fight the financial crisis may be lifted.

Here is a snapshot of the size, effects, and status of stimulus plans in the Asia Pacific's five largest economies.

JAPAN

STIMULUS: $170 billion (15.4 trillion yen), about 3 percent of GDP, to be paid for by issuing 44 trillion yen in new bonds.

STATE OF THE ECONOMY: Japan made a fragile recovery from its worst recession in World War Two in the second quarter and is expected to sustain growth in the third quarter. Some analysts fear a government plan to slash public works spending may nudge growth near zero early next year.

EXIT PLAN: None. Current measures run to March 2010. The Democratic Party, which took power on Aug. 30, is considering compiling another extra budget and eyeing more huge spending in next fiscal year's budget.

The Bank of Japan said on Oct. 30 it would stop buying corporate bonds and commercial paper at the end of the year, although it extended by three months to March low-interest loans aimed at supporting corporate funding. It has pledged to maintain interest rates near zero for as long as necessary.

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