Japan has become the third major world economy to edge out of recession, but experts caution that the road to sustained economic recovery will be long.
Preliminary figures released today show growth in the second quarter of this year of just under 1 percent, a fraction lower than some analysts had been forecasting. It brings to an end Japan’s longest recession since World War II and is welcome news for the ruling Liberal Democrat Party. “Conditions are still severe but Japan’s economy is expected to pick up,” Economy Minister Yoshimasa Hayashi said. Japan is the third country of the G7 to return to growth after Germany and France posted positive results. However, continuing the trend will depend to a large extent on recovery in the rest of the world as Japan’s economy is heavily reliant on exports. Economists and policymakers remain wary about the outlook for next year because exports may slow as stimulus measures in other countries wear off. This morning’s figures did not have a positive impact on Asian markets, which were weighed down by other gloomier data from the US.