Asia's second biggest economy Japan notched up a lower- than-expected economic growth rate of 0.3 per cent in the fourth quarter of 2013, less than half what was forecast and in spite of a boom in house- building and stronger consumption.

With growth in fellow Asian giant China slowing, exports have slowed down and the sluggish expansion picture comes at a difficult moment for prime minister Shinzo Abe’s recovery programme.

After a lengthy period of stagnation and recession, the Japanese economy emerged from recession in the last quarter of 2012 and it has expanded now for four quarters in a row, building impetus on a combination of strong government spending and aggressive monetary easing.

Some analysts believe the positive effects of Mr Abe's unprecedented monetary stimulus and huge fiscal spending could be easing, while there are growing expectations are rising that the Bank of Japan will have to increase its enormous purchases of bonds and other assets.

The Japanese are now hoping for a stimulus plan to help them cushion the blow to consumer and corporate demand from a 3 per cent sales tax hike that takes effect on April 1st.