Japan’s economy is in crisis, according to Prime Minister Taro Aso, as a ¥15.4 trillion stimulus package is announced.
“Japan’s economy is worsening rapidly with exports and production tumbling. Job conditions are also deteriorating sharply,” Aso told a media conference.
The new stimulus package, designed to lift the world No.2 economy out of recession, is equivalent to three per cent of GDP and is expected to push up real economic growth by two per cent in the financial year to March 2010.
Finance minister Kaoru Yosano said the government would issue more than ¥10 trillion ($US100 billion) in new bonds to pay for the package.
Japan’s economy tumbled 3.2 per cent in the last quarter of 2008, with business confidence plunging.
Japan has been severely hit by the global recession due to its heavy dependence on exports, with its manufacturing and technology industries slumping as demand crumples.
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