InsideJapan News Network

Japan's cabinet has approved plans to help boost the country's economy and avoid a further recession.

The new package is worth around $63 billion (£39.8 billion) and still needs to be voted through the parliament before it can be fully implemented.

Prime minister Naoto Kan believes the additional funding will help to create new jobs, offer support to Japan's small businesses and improve the country's welfare system.

"By swiftly implementing measures, we aim to avoid a double-dip recession which could otherwise possibly be induced by the economic downturn in Europe and the United States," explained chief cabinet secretary Yoshito Sengoku.

According to Dow Jones News, a key element of the extra measures includes financial provision to secure new sources of rare earth minerals following China's decision to disrupt supplies to Japanese firms.

Meanwhile, the yen continues to remain strong against the US dollar – recently reaching another 15-year high against the US currency of 80.41 yen per dollar.

Written by Mark Smith.