Real gross domestic product grew at an annual pace of 4.6% in the October-December period, the government said. During the last quarter of 2009, the Japanese economy progressed at rate of 1.1%.
“There is some brightness breaking through the clouds,” Finance Minister Naoto Kan told reporters. The corporate capital investment revived on the back of impressive recovery in exports while consumer spending continued to pick up on stimulus measures announced by the government.
The numbers means that Japan remain the second largest economy after the leader U.S but China is catching up fast and is expected to overtake soon. China’s economy is expanding more quickly as fourth quarter growth jumped to 10.7% bringing overall 2009 growth to 8.7%.
Japan’s nominal GDP for the 2009 calendar year came to about 5.1 trillion US dollars (£3.25 trillion), marginally ahead of China’ 4.9 trillion US dollars. Japanese economy has benefited from government stimulus measures at home and around the globe which has given a boost and revived the global trade and the Japanese households has responded positively with increased spending. The total value of the nation’s goods and services has climbed now for three straight quarters and looks unlikely to retreat this year.