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 January assesses the current state of the Japanese economy, stating that "Although the economic movements appear to be pausing, some movements towards a pickup are seen. However, the economy remains 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 aspects remain 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. 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."