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Japan's economy leaves recession

Japan has come out of recession after its economy grew by 0.9% in the April-to-June quarter.

People walk in Tokyo. File photo

The Japanese economy has been hit hard by falling exports

The growth comes after four consecutive quarters of contraction.

Correspondents say that the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained.

Recent figures have shown other nations coming out of recession, including Germany, France and Hong Kong, a sign the global slowdown is easing.

Despite Japan exiting recession, the country’s main share index, the Nikkei, fell back as the rate of growth was not as large as analysts had hoped.

If Japan’s latest quarterly rate were maintained for a full year, the economy would grow 3.7%, but this was less than market expectations of 3.9%.

The Nikkei ended down 329 points or 3.1% to 10,269.

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