Japan also moves out of recession

Japan's economy grew by 0.9% in the April-June quarter from the previous quarter on the back of improved exports and an increase in private spending. That was slightly short of a median forecast of a 1% growth. Japan's economy grew 3.7% on an annualized basis in the quarter ended June following a revised annualized contraction of 11.7% in the previous quarter. This was the fastest annualised expansion in GDP since January-March 2008. External demand contributed 1.6% to April-June GDP growth in Japan, as exports turned up. Private spending rose 0.8%, boosted by Japanese government stimulus steps. Business spending dropped 4.3%, down for the fifth consecutive quarter as companies delayed expenditures on new plants and equipment. Japan's economy expanded for the first time in five quarters, following a revised 3.1% contraction in the January-March period and a 3.5% decrease in the final quarter of 2008 - the biggest drop on record. Japan joined France and Germany as the third G7 nation to come out of recession caused by the global credit crisis. Japan's second quarter growth compared with a 0.3% contraction in the US in the same quarter. The euro zone economy shrank 0.1% after a 2.5% fall in the first three months.