Japan's economy has come out of recession after it grew by 0.9 per cent in the second quarter of the year.
The Japanese government said today the economy had expanded by 3.7 per cent at an annual pace, following four consecutive quarters of recession.
Japan now joins Germany and France among the nation's who are emerging from the global financial crisis. In the quarter April to June, the economy was aided by government stimulus packages and demand for exports, such as cars and electronic goods.
Exports grew 6.3 per cent from the previous quarter, but financial experts have warned this may not be the start of a sustainable recovery for the Japanese economy. They cautioned unemployment was still rising and domestic consumer spending was low.
Last week France and Germany both announced their economies had grown in the second quarter, with Hong Kong also recording a growth of 3.3 per cent for the same period.
There has been a cautious optimism among financial experts regarding the world's second largest economy leaving the recession, with unemployment in Japan currently at a six-year high of 5.4 per cent. Wages have also fallen, although government stimulus has done much to calm the financial storm.
Despite exiting the recession, the Nikkei, the main share index, fell back, ending Monday down 329 points to 10,269.
The Japanese government said today the economy had expanded by 3.7 per cent at an annual pace, following four consecutive quarters of recession.
Japan now joins Germany and France among the nation's who are emerging from the global financial crisis. In the quarter April to June, the economy was aided by government stimulus packages and demand for exports, such as cars and electronic goods.
Exports grew 6.3 per cent from the previous quarter, but financial experts have warned this may not be the start of a sustainable recovery for the Japanese economy. They cautioned unemployment was still rising and domestic consumer spending was low.
Last week France and Germany both announced their economies had grown in the second quarter, with Hong Kong also recording a growth of 3.3 per cent for the same period.
There has been a cautious optimism among financial experts regarding the world's second largest economy leaving the recession, with unemployment in Japan currently at a six-year high of 5.4 per cent. Wages have also fallen, although government stimulus has done much to calm the financial storm.
Despite exiting the recession, the Nikkei, the main share index, fell back, ending Monday down 329 points to 10,269.
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