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Japan's economy leaves recession | Japan's economy leaves recession |
(about 1 hour later) | |
Japan has exited recession after recording growth of 0.9% in the April-June quarter, compared with the first. | |
The economy had shown four consecutive quarter-on-quarter contractions. | The economy had shown four consecutive quarter-on-quarter contractions. |
Recent figures have shown other nations coming out of recession, including Germany, France and Hong Kong, a sign the global slowdown is easing. | |
If Japan's latest quarterly rate were maintained for a full year, the economy would grow 3.7%, figures from the Cabinet Office revealed. | If Japan's latest quarterly rate were maintained for a full year, the economy would grow 3.7%, figures from the Cabinet Office revealed. |
'Positive contribution' | |
Japan - the world's second-largest economy - officially fell into recession last year. | |
The second quarter expansion this year came after a dramatic fall in January-March as the world economic slowdown hit Japanese exports hard. | |
The second quarter expansion was aided by a key government stimulus package, analysts say. | |
Japan has been cautious in its economic outlook | |
But the BBC's Roland Buerk in Tokyo says Japan could still face a long road to sustainable recovery. | |
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. | |
Japan is heavily reliant on its exports. | |
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. | |
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. |