Japan's gross domestic product was up an annualized 1.5 percent in the third quarter of 2011 compared to the previous three months, the Cabinet Office said on Monday in a preliminary report - ending the country's recession following the devastating 9.0 magnitude earthquake and tsunami on March 11.
The headline figure matched analyst expectations following the 0.5 percent contraction in the second quarter.
On a yearly basis, GDP jumped 6.0 percent - edging forecasts for an increase of 5.9 percent after declining 2.1 percent in the second quarter.
Nominal GDP also matched forecasts by rising 1.4 percent on quarter after shedding 1.5 percent in the previous three months. The GDP deflator declined 1.9 percent on year versus expectations for a 2.2 percent contraction, which would have been unchanged from the second quarter.
Net exports contributed 0.4 percentage points to GDP growth, marking the first positive contribution in five quarters. Private consumption jumped 1.0 percent, rising for the first time in four quarters.
Corporate capital spending rose 1.1 percent, matching expectations - while service spending added 0.6 percent.
"The pace of economic recovery has been modest as the slower recovery in overseas demand has led to sluggish growth in exports," Economic and Fiscal Policy Minister Motohisa Furukawa said at a news conference. "The economy will continue picking up as demand for reconstruction is expected to increase, but it is necessary to closely watch downward risks to the Japanese economy."
Analysts suggest that the Japanese economy may stall again in the fourth quarter thanks to persistent strength from the yen, which could dent the exports.
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