Taro Aso, Japan’s newly elected prime minister, hinted on Monday that Japan could expand a planned Y1,800bn ($17.8bn, €13.2bn, £10.3bn) economic stimulus package, as concerns grew that the global recession would further undermine exports and depress the world’s second largest ­economy.

“Exports have driven the economy in Japan for the past 10 years and naturally they will severely decline,” Mr Aso told the Diet, Japan’s parliament. “If we come to a conclusion that specific measures are necessary, we will respond.”