Takenaka admits Japan's debt-deflation spiral

JAPAN - Japan's economic and financial services 'super-minister', Heizo Takenaka, formally acknowledged Tuesday that the nation's economy is caught in a 'vicious circle' of debt and deflation, and that it will be difficult to get the government's own fragile finances back in order.

But at the same time Mr Takenaka suggested that the Japanese economy could be expected to return to annual growth rates of 2.5 per cent in nominal terms or 1.5 per cent in real terms after a few years of 'intensive

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