Global recovery hopes gain momentum as Japan exits recession

TOKYO/NEW DELHI: Spurring further hopes of an easing in global economic situation, the world's second largest economy Japan has exited the recession with GDP growth of 0.9 per cent in the second quarter.

After four straight quarters of contraction, Japan climbed out of the recession to join Germany and France that have already put the worst of the recession behind them.

According to the Japanese Cabinet Office, the country's GDP expanded 0.9 per cent for the three months ended June, while the economy had contracted 3.1 per cent in the first quarter.

Meanwhile, on an annual basis, Japanese economy witnessed a second-quarter growth of 3.7 per cent.

Reflecting the improving economic situation worldwide, European economic majors -- Germany and France -- pulled themselves out of the downward spiral last week, with both economies growing 0.3 per cent in the second quarter, after being mired in recession for about a year.

The world's largest economy too showed signs of perking up with the US Federal Reserve recently saying that the country's economic activity is bottoming out, that financial conditions have started improving.

Further, economies in the Euro zone -- a grouping of 16 nations sharing the common currency euro -- shrank 0.1 per cent in the second quarter, much less than the first-quarter contraction.