1 Dec 2012

Another stimulus package in Japan

7:10 am on 1 December 2012

The government in Japan has approved another stimulus package to revive growth, as the flagging economy becomes an issue in an upcoming general election.

The cabinet said said the money, totalling 880 billion yen ($US10.7 billion), will be used mainly to create employment and support small businesses.

New data for October showed industrial output rising, but few other positive indicators.

Japan's economy contracted in the July to September quarter by 0.9% compared with the previous three months. The BBC reports the contraction is equivalent to an annualised drop in GDP of 3.5%.

Politicians have been calling for more action from the Bank of Japan to end deflation.

The election is on 16 December.