Prime Minister Naoto Kan attended a meeting of the Ministerial Council on Monthly Economic Report and Other Relative Issues at the Prime Minister's Office.

The Monthly Economic Report for December assesses the current state of the Japanese economy, stating that "The economic movements appear to be pausing recently. It is also in a difficult situation such as a high unemployment rate."

On prospects for the economy, it states "As for short-term prospects, although some weak movements are seen for a while, the economy is expected to be picking up, reflecting improvement in overseas economies and the effects of various policy measures. On the other hand, there are the risks that the economy is depressed by a possible slowdown in overseas economies and fluctuations in exchange rates and stock prices. It should also be noted that there is still a risk of the influence of deflation on the economy and a concern about a possible deterioration of the employment situation."

Based on the discussion, the Prime Minister said, "The Japanese economy has achieved a strong growth with an annual real GDP rate of 4.5% for the third quarter of this year. If we look at it from a different perspective, however, the economy could contract as a rebound effect for the fourth quarter. As you are aware, various effects have already emerged. This, I think, makes economic management in the year-end and beginning of the year, which is geared toward maintaining and raising the level of economy steadily, all the more important.
As for the three-phase approach in economic measures, we have allocated more than 100 billion yen in Phase I for steps to realize a low-carbon society. This has created an effect of eliciting investments in various sectors amounting to more than five times as much as the money allocated. The current situation being as it is, I would like to organize as soon as possible a team to discuss economic measures, taking into consideration efforts in Phase II to execute the supplementary budget ahead of schedule and efforts in Phase III to enact the budget for the next fiscal year, thereby establishing a system in which economic measures are carried out in a timely and steady manner."