Japan OKs over $224B in fresh economic stimulus

Published: .
Updated: .

The Japanese Cabinet has approved a fresh stimulus spending of more than $224 billion, rushing to fulfill campaign pledges to break the world's third-biggest economy out of its deflationary slump.

Prime Minister Shinzo Abe announced the decision Friday at a news conference where he said the new measures were intended to add 2 percent to Japan's economic growth and contribute 600,000 new jobs.

Abe urged the central bank to move more aggressively to encourage lending and meet a clear inflation target.

Abe took office late last month after a parliamentary election victory by the Liberal Democratic Party, which is touting public works spending and subsidies to strategically important sectors as part of its plan to pull the economy out of recession.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)