**Japan’s economy is tipped to show growth for the three months to June, after showing four consecutive quarter-on-quarter contractions.**Analysts predict growth of 1% during the quarter, after shrinkage of 3.8% in the previous three-month period.
The data, released on Monday, could mean the recession is over in Japan.
Recent figures have shown other nations are also coming out of the recession, including Germany, France and Hong Kong, a sign the slowdown is easing.
The French and German economies both grew by 0.3% between April and June, bringing to an end recessions in Europe’s largest economies that have lasted a year.
Analysts had not expected the data, suggesting recovery could be faster than previously expected.
And Hong Kong recorded growth of 3.3% in the three months from April to June.
That data was also better than had been expected, with the government subsequently increasing its forecast for growth in the whole year.
Signs of recovery overseas could bode well for Japan, which is highly reliant on exports.
Not worsening
In a recent Bank of Japan report, the central bank underlined its cautious view of the economy, the world’s second largest.
While it said conditions in the world’s second-largest economy had stopped worsening, it warned that unemployment would stay high and consumer spending low.
Analysts do not expect Japan’s central bank to increase rates for some time.
Japan experienced a prolonged period of deflation in the 1990s, commonly referred to as “the lost decade”.
Last month, the bank forecast that Japan’s economy would shrink by 3.4% in the 12 months to 31 March 2010.