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Wednesday, 17th November 2010
In General Japan News,

Japan's lower house approves budget plans

The lower house of Japan's parliament has passed an economic stimulus package worth $62 billion (£39 billion).

Japan's government hopes the supplementary budget will ensure the country avoids a further recession by creating new jobs and boosting small business support.

In addition, the new measures include funding to help Japan discover suppliers of rare earth minerals. The materials are crucial in the production of high-tech devices such as mobile phones but ongoing diplomatic disputes with China means Japan's usual sources are no longer viable.

Japan's economy is continuing to struggle with the high value of yen on the worldwide currency market and subsequent deflation. However, recent government figures showed the country's economy grew by 3.9 per cent in July to September - 2.5 per cent ahead of market expectations.

At the start of the month, the government called for more Japanese companies to invest in overseas operations and benefit from the strong yen.

Written by Susan Ballion.