Friday, June 07, 2002

Japan Reports 1.4% Growth, Signaling End to Recession " Japan's economy expanded by 1.4 percent during the first quarter of this year, the government said today, ending a recession that had dragged on for a year." "A 6.4 percent rise in exports and a 1.6 percent increase in consumer spending — which together account for more than half the economy — helped to revive Japan's economy, the second largest in the world after the United States. The return to economic growth was slightly less robust than analysts had forecast because corporate capital spending dropped 3.2 percent compared with the last quarter of 2001. But it was the strongest growth in two years." "But today's growth numbers do little to ease doubts about the sustainability of Japan's recovery, which is still largely driven by exports rather than domestic spending. Production has picked up — particularly of cars, electronics and semiconductors — but most of these products are being shipped overseas rather than used in Japan. Exports account for only about 10 percent of Japan's total economic output. Should economic growth slow in the United States, traditionally Japan's biggest export market, Japan would probably fall back into recession." 1:37:39 PM  Google It!  comment  []

Japan's economy rebounds in first quarter "Japan's economy grew 1.4 percent in the first quarter, springing back from three straight quarters of contraction and marking the strongest growth in two years, the government said Friday." "But analysts and government officials warned against too much optimism that the positive reading will continue in months ahead. The Japanese government is expecting the economy to grow zero percent in the fiscal year that began in April." "The Cabinet Office said gross domestic product, which measures the total output of goods and services produced in the nation, grew at an annual rate of 5.7 percent in the three months through March." "A big push in growth came from exports, which climbed 6.4 percent, on the back of recovery in the United States and the rest of Asia. Household consumption rose 1.6 percent, while public investment increased 4.1 percent." 12:14:05 PM  Google It!  comment  []