9 Dec 2009

Japan announces stimulus plan

7:06 am on 9 December 2009

Japan has announced a 7.2 trillion yen ($US81 billion) stimulus plan designed to prevent the country's economy from slipping back into recession.

The economy has expanded for the last two quarters, but the return of deflation has sparked fears growth could stall.

The strong yen is also holding back Japanese exporters.

This is the first major economic stimulus announcement by the newly-elected Democratic Party of Japan. The BBC reports the previous government introduced a package worth 15.4 trillion yen in April this year.