Japan's economy rebounds in 2Q

After a long year in recession, Japan's economy emerges out of the murky waters with an annual growth rate of 3.7%. Thus, it joins the elite countries' list which appear to be emerging out of the financial crisis.

But economists and politicians sounded cautious, noting that the main driver of growth was exports and that domestic consumer spending remained fragile amid plunging incomes and rising unemployment.

The recovery in the April-June quarter was driven by robust demand for cars, video recorders and other electronics goods, according to government data. Shipments to China and other emerging markets were particularly strong, although exports to the U.S. and Europe also showed modest recoveries. Exports grew 6.3 percent from the previous quarter, the highest rate in seven years.

Although, the Japanese government warns that risk factors remain, including unemployment and production is still on a low level, if the economy goes on at this rate, the economy would grow 3.7 percent. (Source: Yahoo News)