Japan’s cabinet has approved a 422.6bn yen (€4bn) economic stimulus package, hoping to fend off recession amid mounting signs of a faltering recovery in the world’s third biggest economy.
The emergency spending package is also meant to help make up for lost momentum from reconstruction in the region devastated by the March 2011 earthquake and tsunami.
Prime Minister Yoshihiko Noda’s leeway to boost spending is limited by a legislative stand-off preventing issuance of deficit-covering bonds.
Mr Noda has ordered the government to draft further measures to boost growth.