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Wednesday, 4th August 2010

Kan to consider more economic stimulus

Japanese prime minister Naoto Kan is to consider more economic stimulus measures as warnings continue that the country's economy could be in for another recession.

Following its worst recession since the end of the second world war, the Japanese economy is now struggling with a very strong yen, as well as the after effects of the downturn and high levels of deflation.

Kan, who used to be the country's finance minister, has made several stark warnings about the state of the Japanese economy but some have accused him of being overly dramatic, despite the nation's national debt now standing at twice its GDP.

Speaking during a session of the budget committee of the Lower House, he said that "the time has come" to think about some sort of economic stimulus package, reported Reuters.

"We can see some levels of improvement in our nation's current economic conditions, but the employment situation in particular is still severe, while overseas economies aren't necessarily in a stable state," he commented.

Written by Susan Balion.