April-June GDP Rises Annualized 3.7%

Japan's real gross domestic product grew 0.9% in April-June from the prior quarter-annual pace of expansion of 3.7%. It was Japan's first quarter of GDP growth since January-March 2008, driven by a pickup in exports and private consumption. External demand, measured by exports minus imports, pushed up overall growth by 1.6%, reflecting increasing demand from China and other Asian countries. Private spending rose 0.8% on the back of the Japanese government's efforts to support consumers. In negative contributions, capital spending, which has been steadily slumping throughout the downturn, dropped 4.3%. Deteriorating employment conditions and falling incomes depressed spending on housing down by 9.5%.