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| Japan's economy leaves recession | Japan's economy leaves recession |
| (9 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 the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained when this is concluded. | Correspondents say the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained when this is concluded. |
| 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' |
| Any boost to Japan is also a boost to its major partners. But that does not mean the nascent economic recoveries in Europe and Japan are the same class="" href="/2/hi/business/8205072.stm">Does Japan offer hope to other economies around the world? | |
| Japan officially fell into recession last year and there was a dramatic fall in growth in the January-March period 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 the January-March period as the world economic slowdown hit Japanese exports hard. |
| Government stimulus measures totalling $260bn (£159bn) 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. | Government stimulus measures totalling $260bn (£159bn) 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, with overall exports up 6.3% during the quarter. | Manufacturers also benefited from recovering demand in China and other markets, with overall exports up 6.3% during the quarter. |
| But Japan could still face a long road to sustainable recovery, our correspondent says, with domestic private consumption rising only 0.8% despite the stimulus measures. | But Japan could still face a long road to sustainable recovery, our correspondent says, with domestic private consumption rising only 0.8% despite the stimulus measures. |
| Seijiro Takeshita, director of Mizuho Financial, Japan's second largest banking group, told the BBC that the Japanese economy was now staging a "true comeback". | Seijiro Takeshita, director of Mizuho Financial, Japan's second largest banking group, told the BBC that the Japanese economy was now staging a "true comeback". |
| "We are definitely getting out of the excessive pessimism that we have been seeing... however, a lot of big questions remain, namely private consumption," he said. | "We are definitely getting out of the excessive pessimism that we have been seeing... however, a lot of big questions remain, namely private consumption," he said. |
| "We know this time it was good, but that was due to a lot of government stimulus spending." | "We know this time it was good, but that was due to a lot of government stimulus spending." |
| European recovery | European recovery |
| 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. | |
| 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. | |
| 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. | |
| That is why analysts say it will be a long road to a sustained recovery. Japan still gloomy despite growth Recession ends but markets fall | |
| Japan is heavily reliant on its exports. | Japan is heavily reliant on its exports. |
| 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. |
| Are you in Japan? What are your experiences of the current economic situation? Send us your stories using the form below. | Are you in Japan? What are your experiences of the current economic situation? Send us your stories using the form below. |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |