Japanese economy in emergency situation

A senior official of the governing Liberal Democratic party in Japan has said the economy is facing an emergency.

The Secretary General of the party, Koichi Kato, said the governing coalition should take immediate steps to boost the economy and postpone planned cuts in spending.

His comments follow further sharp drops in share prices in Tokyo last week.

The fall came in spite of a surprise cut in taxes, announced by the Japanese Prime Minister earlier in the week.

The International Monetary Fund has warned that the Japanese economy is likely to be the worst-hit in the developed world as the effects of the downturn in Asia spread.

From the newsroom of the BBC World Service