Exports, Stimulus Lift Japan Out of Recession
Japan's economy grew 0.9 percent in the three months to June, marking the first expansion in five quarters on the back of exports and government stimulus spending, but analysts say it will be a long road to a sustained recovery
The growth in the world's No.2 economy provided further evidence that the worst of the damage wrought by a global financial crisis may be over, but analysts and policy-makers are wary about the outlook, which depends on a recovery in world demand.
The preliminary figure, which fell slightly short of a median market forecast of a 1.0 percent increase, puts Japan in the first camp of G7 countries that have pulled out of recession, along with Germany and France.
It follows a revised 3.1 percent contraction in January-March and a 3.5 percent decrease in the final quarter of last year, which was the biggest drop on record.
On an annualized basis, Japan's economy grew 3.7 percent from the first quarter, the fastest since January-March 2008. That compared with a 1.0 percent contraction in the United States in the same quarter. The euro zone economy shrank 0.1 percent after a 2.5 percent fall in the first three months.
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