Japan finance minister warns on 'double dip' recession

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Wednesday, 20th January 2010
In General Japan News,

Japan finance minister warns on 'double dip' recession

While the Japanese government is making continued efforts to combat deflation, the country is not yet out of the woods when it comes to the risk of slipping into a double-dip recession.

The country's finance minister Nyoto Kan made the statement during a press conference, though he added he "personally" believes the country "can manage to avoid it".

He added that the overall assessment of the nation's economy has remained unchanged over the last six months, noting that things are "picking up".

However, Mr Kan pointed out that while the employment situation in Japan remains severe, it is difficult for the government to make revised economic assessments, iStockAnalyst reported.

The inclement economic climate and consumers' reluctance to borrow money contributed to low levels of bank lending in the country.

Figures from the Bank of Japan show lending was at its lowest point in four years in December 2009.

Japan recently announced that it has emerged from its most significant recession since the end of World War II.

Written by Kimberley Homer.