The government unveiled measures Friday to stimulate economic growth, including providing financial assistance to small and midsize companies, revitalizing regional economies and improving the employment situation.
Hit by the recent global credit crisis, rising materials costs, fragile stock prices and a strong yen stemming from a weak dollar, Japan's economy is facing a number of challenges as growth slows.
On Tuesday, the Bank of Japan's "tankan" survey showed business sentiment even among large manufacturers deteriorated to a four-year low and the outlook for the coming quarter was bleak.