Japan's 2Q GDP rises 3.7 per cent

TOKYO: Japan's economy grew 3.7 per cent at an annual pace in the second quarter, signaling exports were gradually picking up after the nation's worst recession since the end of World War II, the government said on Monday.

Compared to the previous quarter, the world's second-largest economy expanded 0.9 per cent in April-June from the previous quarter, according to Cabinet Office data. If that rate were maintained for a full year, Japan's economy would grow 3.7 per cent.

There has been some hope that Japan's economy may have hit bottom in the first quarter. Recent signs have been pointing to a possible rebound in gross domestic product, or the value of a nation's goods and services.

Japanese manufacturers have benefited from recovering demand in China and other emerging markets. Government stimulus measures have also helped, such as cash handouts and incentives to boost the purchase of ecological products.

Exports grew 6.3 per cent quarter-on-quarter, marking the highest growth since April-June 2002 when Japanese shipments expanded 6.4 per cent.

Kingo Toyoda of the Cabinet Office said the rebound came after Japan's economy contracted for four consecutive quarters.

``It seems that ecological policies have had some effects,'' he told reporters.

Export-dependent Japan has been hit hard by the plunge in global demand set off by the U.S. financial crisis. Major companies such as Toyota Motor Corp. and Sony Corp. have cut thousands of jobs and suspended factory lines. The jobless rate hit 5.4 per cent in June, a six-year high.