Bull up....
>>August 17, 2009
Japan’s Economy Hits a Potential Turning Point
By HIROKO TABUCHI
TOKYO — Japan’s economy rebounded in the latest quarter for the first time in a year, signaling the possible end of the country’s deepest recession since World War II and brightening prospects for a widespread global recovery.
Japan’s economy, the world’s second-largest, has been sluggish for years, but it plunged into recession in the wake of the global financial crisis last year. Exports, its mainstay, at one point fell to half their precrisis levels.
But a turnaround in exports and a vast fiscal stimulus program helped produce a modest 0.9 percent economic expansion in the three months that ended June 30, government figures showed on Monday, equivalent to annualized growth of 3.7 percent.
The expansion was in line with the 0.9 percent growth forecast that was the average of 10 economists surveyed last week. A 1.2 percent growth in public demand helped offset a 1.3 percent fall in demand from the private sector, the data showed. Overall domestic demand fell 0.7 percent from the previous quarter.
“The results were very positive,” said Takuji Aida, senior economist at UBS Securities Japan. “It’s true Japan would not have achieved growth without government stimulus. Still, the data shows that inventory adjustment is all but over, and we can expect growth going forward.”
The Japanese economy’s resurgence after four consecutive quarters of contraction — including a historic 14.2 percent fall in annualized terms in the previous quarter — adds to a slowly improving picture of the world economy.
Last week, the German and French economies also showed unexpected growth. The Federal Reserve also said last week that the United States, the world’s biggest economy, appeared to be “leveling out.” China, Hong Kong, Singapore and South Korea have reported rebounds as the effects of stimulus efforts across the globe take effect.<< |
