Vice Finance Minister Koji Tanami said March 16 he agreed with the Economic Planning Agency's view that it would be "quite difficult" for the nation's economy to achieve 0.1 percent growth for the current fiscal year.
The economy during the October-December period shrank by an annualized 0.7 percent compared with the previous quarter, and most observers say the nation will probably record negative growth for the first time in 23 years when the fiscal year ends this month.
Speaking at a news conference, the Finance Ministry's top bureaucrat noted that the fall in personal consumption was a key reason behind the dismal growth figures, and added that the collapse of some large financial institutions last fall dampened consumer sentiment.
In that regard, government efforts such as injecting new capital into banks with the help of public funds have helped boost trust in the Japanese financial system, he stressed. "I think that the responsible execution of the (economic and financial) measures we are empowered to is the orthodox path to restoring confidence," Tanami said.