Japan Economy 2010 Goes slow down

Japan GDP figures show sharp slowing of economic growth.

Japan relies on exports for growth but the strong yen is making that more difficult

Economic growth in Japan weakened significantly in the last financial quarter, official figures show.

Between April and June this year gross domestic product - the sum of the nation's goods and services - grew by 0.1%, much lower than expected.

Analysts say the country's export-led recovery appears to be faltering as the value of the yen appreciates.

Germany and the US recently reported far superior GDP figures for the same period.

Germany registered a 2.2% rise, while the US economy grew at an annualised rate of 2.4%.

The BBC's Roland Buerk in Tokyo says Japan remains one of the wealthiest and most prosperous countries in the world, but the trajectory of its economy has been clear for years.

World Bank figures show that in the first eight years of this century Japan's economy expanded by just 5% while China's grew by 261%.

The GDP figures give further credibility to the widely held belief that China will soon overtake Japan as the world's second biggest economy.

That will become clearer early in 2011, when GDP figures for the whole of 2010 become available for each country.

Japanese shares closed lower after the announcement, with the benchmark Nikkei 225 index falling 0.6% to 9,196.67.

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