Japanese bank lending has slid in its biggest annual fall in more than four years.

The January figures have shown that companies stayed away from borrowing for capital investment purposes.

The Bank of Japan has warned the economy will linger in the doldrums until the middle of the year before it experiences a more sustainable recovery.

The central bank, in December, decided to offer banks more short-term funds to support the economy ahead this year’s elections.

Many analysts expected economic growth to slow early this year, with the Japanese government suspending some public works projects in order to institute new policies.