Japanese government to buy factories and machinery

Japanese government claimed its readiness to take the unprecedented step and buy nation's factories and machinery directly with taxpayer funds. Shinzo Abe and his cabinet will spend around 1 trillion Yen in order to buy plant in the electronics, equipment, and carbon fibre industries. Earlier this week, Abe said he would revive Japanese nuclear industry. Japanese Prime Minister claimed he and his government will to pursue bold monetary policy, flexible fiscal policy and a precise growth strategy. He also plans to temper heated territorial disputes with neighbouring countries as well as bolster ties with the world's largest economy.

"Japan's economy can emerge from recession in the first quarter as consumer spending and exports are expected to pick up," said Yasuo Yamamoto, senior economist at Mizuho Research Institute. "But in order for growth to accelerate even further, capital expenditure needs to improve. Unfortunately, capital expenditure is likely to remain weak."