Posted on 17 Nov 2009
The result marks the second straight quarter of expansion and the biggest rise in real gross domestic product since 2007.
On a quarterly basis, GDP was up 1.2 percent from the previous three-month period, according to the Cabinet Office's preliminary data.
The figure beats Kyodo news agency's forecast for an annualized increase of 2.6 percent and quarterly growth of 0.6 percent.
GDP, or the total value of the nation's goods and services, rose at a revised annual pace of 2.7 percent in the April-June period after posting a record decline in the first quarter.
Driving the third quarter economy was a 1.6 percent increase in capital spending by companies, bolstered by recovering global demand.
Japan's economy, which relies heavily on the world to buy its cars and gadgets, fell into its worst recession since World War II earlier this year in the wake of the global financial crisis.
Emergency spending by governments around the world has kickstarted demand, particularly in
Exports jumped 6.4 percent from the April-July period, the Cabinet Office said.
Domestic stimulus measures and consumer incentives to buy eco-friendly products have also helped.
Consumer spending, which accounts for about 60 percent of Japanese GDP, rose 0.7 percent from the second quarter.
Still, the central bank predicted last month that it would be a sluggish few years for
It warned of a tepid recovery combined with three straight years of deflation.
Despite improving earnings for companies, demand in
Prices are falling as a result, with the nation's core consumer price index down 2.3 percent in September from the previous year.
Deflation, which plagued
This can lead to production and wage cuts, as well as increase debt burdens.
