In a monthly report released Friday, the Economic Planning Agency said that although the economy has stalled and business sentiment is dimming, the economy has not yet entered recession. In a retreat from the government's long-held assessment of a mildly recovering recovery, the agency described the economy as being "at a standstill."
"A stricter expression was used because the recovery seems to have temporarily stopped," said Akira Furukawa, head of one of the body's domestic research divisions during a briefing. "We cannot agree that the economy is in a recession," he said. He indicated it may rise again.
Director General of the EPA Koji Omi said there was little risk of the economy entering a recession and predicted that the government's new stimulus package will give it a lift and boost consumer confidence. The package will be announced Tuesday.