Japan's industrial production slipped more than projected to the lowest level since the aftermath of the widely destructive earthquake of 2011, a newly published government report revealed.

According to the released figures, Japan's industrial production dropped 1.7 per cent in November from the previous month.

Besides, the country also remained entangled by deflation. Consumer prices (excluding food) tumbled 0.1 per cent in November year-on-year. The figure is well below the country's central bank's goal of 1 per cent and new Prime Minister Shinzo Abe's desired target of 2 per cent.

The figures have clearly bolstered the case for the new premier to give a free rein to his planned large-scale stimulus program.

Yoshimasa Maruyama, chief economist at Tokyo-based Itochu Corporation, said, "Weakness in exports is the major drag on Japan's economy. Given the weak state of the economy, Abe's government may need a large-scale stimulus program to boost growth."

According to Maruyama, the government may pump 5-10 trillion yen in the economy as initial support measures. He added that the country's central bank will definitely move to a more forceful inflation target in the near future.

Abe is expected to ask the Bank of Japan to introduce monetary stimulus measure to provide a boost to the economy. When it comes to the fiscal front, Abe has already directed ministries to compile emergency spending plans by 7th of January.