TOKYO, June 26 - Financial Services Agency Minister Hakuo Yanagisawa said on Tuesday that he wanted Japan to form its policy to avoid a contraction in nominal gross domestic product.
Yanagisawa told a parliamentary committee that if nominal GDP falls in Japan, it would be hard to expect brisk corporate activity and that bad loans could emerge.
"I hope our policy management would not be the one that could allow a contraction in nominal GDP," he said without specifying a time frame.
He added that he understands that the administration has already taken into account his consideration on the matter.
Japan's economy contracted by 0.2 percent in real terms in the January-March quarter from the previous quarter. In nominal terms, January-March GDP rose 0.6 percent in the period.