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Monday, 11th October 2010
In General Japan News,

Japan's approves economic stimulus

Japan's cabinet has approved new economic stimulus measures worth 5.05 trillion yen (£38.2 billion).

It is hoped by the government that the plan could boost the country's economy and protect it from the strong yen. Prime minister Naoto Kan believes the new package will increase GDP by 0.6 per cent and create or protect around 500,000 jobs.

Japan's central bank has already taken a number of steps to increase economic activity and export levels, including cutting interest to almost zero per cent and implementing a form of quantitative easing.

The new package will now be put forward for approval by the parliament and the prime minister is keen to ensure that it receives the backing it needs.

"To implement these economic measures, the fiscal budget is the major issue of the current parliamentary session and I will devote my full efforts to see that it is passed," explained Mr Kan, reports AP.

The prime minister has also confirmed plans for the Japanese government to develop stronger relationships with Fiji and build on the two countries' current relationship.

Written by Kimberley Homer.