FLGS – Global Finance Report

TOKYO – Japanese Prime Minister Yukio Hatoyama said it would seek to prevent the State Sakura into the abyss of recession both (double-dip recession).

Japan will use the economic stimulus as a tool to avoid deterioration. “Economics should not enter the double-dip recession and we are not going to let that happen,” Hatoyama said yesterday. Hatoyama urged the Japanese parliament approved the additional budget to finance the economic stimulus package.

Hatoyama early December and announced a stimulus package design, including new purchases worth $ 80 billion. Stimulus spending programs, including incentives for people who buy products that save energy, financial support for small firms and fresh funds for companies that have trouble paying its employees salaries.

Coalition party, which dominates the Japanese Parliament, the draft plan approved this additional expenditure in January. With the approval of this design, the Japanese Parliament to focus on discussing the state budget for fiscal year 2010/11 (April 2010-March 2011).

“I will try to optimally design the additional expenditures can be approved soon,” Hatoyama added. Economic growth in Japan back II/2009/10 quarter. However, deflation and weak domestic demand is a concern policy makers.

Last week launched the opening Hatoyama millions of jobs and growth ekonomi.Namun efforts, he did not explain in detail the steps to be taken. Strategic policy is predicted to appear in June. Japan predicted to contract 2.6 percent in 2009/10. This opens opportunities China replaced Japan as the country with the second largest economy in the world.