14 Nov 2011

Japanese economy grows for first ime in a year

9:28 pm on 14 November 2011

Japan's economy grew by 1.5% in the third quarter of 2011 following a slump caused by the earthquake and tsunami in March.

It is the first time in a year that Japan's quarterly results have shown growth and it indicates an annual growth rate of 6%.

Data released by the Cabinet Office showed net exports accounted to just over a third of the growth as supply chains recovered in the wake of the earthquake and tsunami, lifting factory output and consumption.

However, the BBC reports that analysts see a number of threats to Japan's frail recovery.

They include the strength of the yen, slowing global growth and the impact of the floods in Thailand on the supply chain of Japanese exporters.