The Japanese economy has been struggling badly for the last two years due to the global economic crisis. The country has been forced to borrow heavily to keep the economy avoid a big crash. And the problem is not over yet, with the latest data indicating a 1.2% deflation rate last month.
That is forcing lot of people to delay their spending which in turn is hurting the economic recovery. The unemployment rate is also hovering at 5.1% which is expected to remain high. The Japanese central bank has already kept the interest rate low at record bottom level, so there is not much room for it to push the economy through monetary measures.