Japanese Economy Breaks Free of Recession

(CTV News)

Japan has joined the short but growing list of developed countries to emerge from recession, its government said Monday, by posting 0.9% economic growth in the second quarter of 2009.

After the global financial crisis struck last year, the world’s second-largest economy shrank for four consecutive quarters, its largest decline since Second World War. But according to new data released Monday, recovering exports and a sweeping stimulus program helped it grow by an annualized growth rate of 3.7% during the three months ending June 30.

Cutting taxes and creating incentives to buy energy-efficient cars and household appliances helped encourage consumer spending. The Japanese government has also promised to spend roughly US$263 billion to stimulate the economy. That includes cash handouts and public spending on infrastructure projects such as reinforcing the country’s public schools against earthquakes.

Still, Japan’s unemployment rate was 5.4% in June, the highest in six years. And wages fell between April and June. Read more here.