Monday, August 17, 2009
G7 is returning to growth
Posted by David Smith at 10:15 AM
Category: Thoughts and responses

The advanced country recession is coming to an end. After France and Germany last week, now Japan has recorded growth in the second quarter. It will be disappointing if the United States, Canada, Italy and Britain do not see positive GDP in the third quarter.

Net trade made the biggest contribution to Japan's 0.9% growth in the second quarter, recovering from a spectacular collapse as export markets stabilised. Consumer spending also picked up but investment remained very weak. With deflation a reality in Japan (as in the eurozone), the question of how sustainable the upturn will be remains paramount.