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| Japan's economy leaves recession | Japan's economy leaves recession |
| (41 minutes later) | |
| Japan has come out of recession after its economy grew by 0.9% in the April-to-June quarter. | Japan has come out of recession after its economy grew by 0.9% in the April-to-June quarter. |
| The growth comes after four consecutive quarters of contraction. | The growth comes after four consecutive quarters of contraction. |
| Correspondents say that the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained. | Correspondents say that the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained. |
| Recent figures show other economies coming out of recession, including Germany, France and Hong Kong, a sign the global slowdown is easing. | Recent figures show other economies coming out of recession, including Germany, France and Hong Kong, a sign the global slowdown is easing. |
| Despite Japan exiting recession, the country's main share index, the Nikkei, fell back as the rate of growth was not as large as analysts had hoped. | Despite Japan exiting recession, the country's main share index, the Nikkei, fell back as the rate of growth was not as large as analysts had hoped. |
| If Japan's latest quarterly rate were maintained for a full year, the economy would grow 3.7%, but this was less than market expectations of 3.9%. | If Japan's latest quarterly rate were maintained for a full year, the economy would grow 3.7%, but this was less than market expectations of 3.9%. |
| The Nikkei ended down 329 points or 3.1% to 10,269. | The Nikkei ended down 329 points or 3.1% to 10,269. |
| 'Positive contribution' | 'Positive contribution' |
| ANALYSIS Mariko Oi, reporter, BBC Asia Business Report Appetite for Japanese cars is slowly recovering around the world, thanks to government schemes to encourage people to replace their old vehicles. | ANALYSIS Mariko Oi, reporter, BBC Asia Business Report Appetite for Japanese cars is slowly recovering around the world, thanks to government schemes to encourage people to replace their old vehicles. |
| Toyota has narrowed its full-year loss, and its smaller rival Honda has raised its forecast for the year. | Toyota has narrowed its full-year loss, and its smaller rival Honda has raised its forecast for the year. |
| Overall Japanese exports grew 6.3% in the second quarter from the previous three months. That's reduced stockpiles of goods, and encouraged firms to start producing again. | Overall Japanese exports grew 6.3% in the second quarter from the previous three months. That's reduced stockpiles of goods, and encouraged firms to start producing again. |
| Overall industrial output increased 8.3% in the three months to June. | Overall industrial output increased 8.3% in the three months to June. |
| Consumers are also starting to spend thanks to the stimulus package worth $260bn. | Consumers are also starting to spend thanks to the stimulus package worth $260bn. |
| But people are still losing jobs. The unemployment rate continues to rise, and is expected to hit a record 5.8% next year. | But people are still losing jobs. The unemployment rate continues to rise, and is expected to hit a record 5.8% next year. |
| That is why analysts say it will be a long road to a sustained recovery. class="" href="/2/hi/business/8204703.stm">Japan growth fails to lift optimism | |
| Japan officially fell into recession last year and there was a dramatic fall in growth in January-March as the world economic slowdown hit Japanese exports hard. | Japan officially fell into recession last year and there was a dramatic fall in growth in January-March as the world economic slowdown hit Japanese exports hard. |
| Massive government stimulus measures helped to boost the economy, including cash handouts and subsidies to buy energy efficient cars and home appliances, the BBC's Roland Buerk in Tokyo says. | Massive government stimulus measures helped to boost the economy, including cash handouts and subsidies to buy energy efficient cars and home appliances, the BBC's Roland Buerk in Tokyo says. |
| Manufacturers also benefited from recovering demand in China and other markets. | Manufacturers also benefited from recovering demand in China and other markets. |
| But Japan could still face a long road to sustainable recovery, our correspondent says. | But Japan could still face a long road to sustainable recovery, our correspondent says. |
| Junko Nishioka, chief economist at RBS securities, told Reuters the latest figure was "very good". | Junko Nishioka, chief economist at RBS securities, told Reuters the latest figure was "very good". |
| "The positive contribution of public spending is likely to continue, so I don't think there will be a return to [contraction], as feared by some," the economist added. | "The positive contribution of public spending is likely to continue, so I don't think there will be a return to [contraction], as feared by some," the economist added. |
| European recovery | European recovery |
| Japan is heavily reliant on its exports. | Japan is heavily reliant on its exports. |
| Japan's central bank has been cautious in its outlook | Japan's central bank has been cautious in its outlook |
| The slowdown in the US has hit it hard as American consumers have limited their spending. | The slowdown in the US has hit it hard as American consumers have limited their spending. |
| In a recent Bank of Japan report, the central bank underlined its cautious view of the economy. | In a recent Bank of Japan report, the central bank underlined its cautious view of the economy. |
| While it said conditions in the Japanese economy had stopped worsening, it warned that unemployment would stay high and consumer spending low. | While it said conditions in the Japanese economy had stopped worsening, it warned that unemployment would stay high and consumer spending low. |
| Last month, the bank forecast that Japan's economy would shrink by 3.4% in the 12 months to 31 March 2010. | Last month, the bank forecast that Japan's economy would shrink by 3.4% in the 12 months to 31 March 2010. |
| The French and German economies both grew by 0.3% between April and June, bringing to an end recessions in Europe's largest economies that have lasted a year. | The French and German economies both grew by 0.3% between April and June, bringing to an end recessions in Europe's largest economies that have lasted a year. |
| Analysts had not expected the data, suggesting recovery could be faster than previously expected. | Analysts had not expected the data, suggesting recovery could be faster than previously expected. |
| And Hong Kong recorded growth of 3.3% in the three months from April to June. | And Hong Kong recorded growth of 3.3% in the three months from April to June. |
| That data was also better than had been expected, with the government subsequently increasing its forecast for growth in the whole year. | That data was also better than had been expected, with the government subsequently increasing its forecast for growth in the whole year. |
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