Following Hong Kong’s 3.3% growth, France’s and Germany’s 0.3%, and Singapore’s 21%, the world’s second largest economy is the most recent to join the league of nations emerging from recession.. Today, Japan reported GDP growth of 0.9% quarter on quarter while on an annualized basis, the Japanese economy grew by 3.7%. This is its first growth in five quarters. While some analysts view this as unsustainable, a growth of around 2% for the year is still expected.
The Japanese stimulus, which was around 4% of GDP helped boost public investment. Other market indicators also improved including exports, which grew 6.3% while private consumption was 0.8% higher for the period. Having said that, declining prices and a 6-year unemployment high are still weighing down on the economy.
Even with such positive news, the Nikkei225 still closed lower following a region-wide sell off in the markets. The index closed lower by 3.1%.