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Wednesday, 29 February 2012 06:01

Japan's Industrial Production Beat Expectations

Japan's industrial production advanced more than expectations, indicating that the world's third-largest economy may return to growth this quarter.

The Japanese economy released January's preliminary reading for the industrial production, where it retreated to 2.0% compared with the prior reading of 3.8, also it missed expectations of 1.5%.

On the other hand, January's preliminary reading for the annualized industrial production advanced to -1.2% compared with the prior reading of -4.3%, also it exceeded expectations of -1.6%.

As, the nation's huge manufacturers like Toyota Motor Corp. and Nissan Motor Co. are recovering from disruptions that caused by Thailand's floods and the earthquake and tsunami that destroyed a huge part of Japan.

Also, the reconstruction work and incentives for purchases of environmentally friendly cars may help to revive the economy that shrank an annualized 2.3% in the fourth quarter.

the Prime Minister Yoshihiko Noda's approved a 2.5 trillion yen ($31 billion) extra budget, that passed by the parliament this month, included 300 billion yen for the subsidy program. Car sales jumped 24 percent in January from a year earlier, the most in 22 years.

additionally, the progress in containing Europe's debt crisis, along with the weakening yen and monetary easing in emerging nations may help Japan's economy to recover.

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