This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8204075.stm

The article has changed 20 times. There is an RSS feed of changes available.

Version 3 Version 4
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 to the first. 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 are also coming out of the recession, including Germany, France and Hong Kong, a sign the slowdown is easing 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.
Not worsening 'Positive contribution'
Japan is heavily reliant on its exports so growth overseas could bode well for its recovery. Japan - the world's second-largest economy - officially fell into recession last year.
But while the worst might be over, the pace and depth of the recovery will rely on whether Asia can be a "true engine of global growth", the Bank of England's Andrew Sentance said in the Sunday Times. The second quarter expansion this year came after a dramatic fall in January-March as the world economic slowdown hit Japanese exports hard.
Mr Sentance, who is part of the bank's rate-setting monetary policy committee, said consumer demand from Asian nations would have to increase to boost growth. The second quarter expansion was aided by a key government stimulus package, analysts say.
Japan's economy - like other Asian nations - is heavily reliant on exports. The slowdown in the US has hit it hard as American consumers have limited their spending. Japan has been cautious in its economic outlook
China's government has made a point of saying that recovery will have to be based on domestic demand. 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 world's second-largest 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.
Beating forecasts
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.