Japan's economy grew at an annual pace of 4.8 percent in the 2nd quarter of the 2009 fiscal year, marking 2nd consecutive quarters of growth and the biggest rise in its GDP since 2007.
On a quarterly basis, Japan’s GDP was up 1.2 percent during the July-September period from the previous three months, according to a preliminary report released by the Cabinet Office on Nov. 16.
The figures are much higher than previously forecast by economists who had predicted an annual growth of 2.9 percent and a quarterly rise of 0.7 percent.
Japanese Deputy Prime Minister Naoto Kan attributed the higher than expected growth to a pickup in the country’s exports, increased industrial production and a rise in consumer demand, which were fuelled by the government’s stimulus packages.
Kan said that the growth in GDP indicates that the Japanese economy is recovering from its most serious financial crisis in decades.
During that quarter, consumer spending - which makes up about 60 percent of Japanese GDP - rose by 0.7 percent from the previous quarter, corporate capital spending rose 1.6 percent, while exports increased by 6.4 percent.
However, many economists warned that it is too early to say that a sustainable recovery in the Japanese economy has started as there is still a weak employment market, falling incomes and rising deflation./.