PM Shinzo Abe will capitalise on the news with a new BoJ chief
Tokyo – Arabstoday
Japan eased out of recession in the last quarter of 2012, with modest growth that, analysts say, underpins a strengthening economy, as the government and central bank up their fight against deflation, AFP has
The 0.2 percent expansion on an annualised basis in the three months to December will be welcome news for Prime Minister Shinzo Abe, whose first few months in office have seen renewed optimism over the world's third largest economy.
The economy had shrunk for two consecutive quarters from April through September as export demand weakened on the back of financial turmoil in the key European market, a strong yen and a diplomatic row with China.
Adding to the upbeat sentiment Friday was a 2.64 percent surge in the benchmark Nikkei 225 index, taking it to levels not seen since before the 2008 collapse of Lehman Brothers that heralded the global economic crisis.
Abe's mantra since being swept to power in December has been one of pumping life into a flaccid economy and turning around 15 years of growth-sapping inflation, while announcing huge debt-funded spending packages.
The country has seen a mixed bag of economic data lately, with the unemployment rate edging down to 4.2 percent in January and deflation doggedly persisting, while industrial output showed a modest rise of 0.1 percent in January from the previous month.