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Wednesday, 18th August 2010
In Business In Japan,

Japanese prime minister considers new stimulus measures

Japanese prime minister Naoto Kan is considering a fresh wave of stimulus measures in a bid to help prop up the nation's ailing economy.

Following the news that the Japanese economy has dropped from the second biggest in the world to the third, Kan is now looking at new stimulus schemes which could be put in place by next month.

According to local news source the Nikkei business daily, cited by AFP, among the measures which could be proposed are extra cash assistance for small and medium-sized firms, new employment programmes to try and help the young get into the workplace and measures to try and stimulate consumption.

The government will use money from government funds for the new projects, said the newspaper, which could total some 1.7 trillion yen (£12.7 billion).

New figures recently showed that Japan's Asian neighbour China has overtaken the country to become the world's second largest economy.

Written by Kimberley Homer