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TOKYO — Japan's economy beat expectations in the fourth quarter, fueled by robust exports and a pickup in consumer demand at home.
The government said Monday that real gross domestic product grew at an annual pace of 4.6 percent in the October-December period. The average forecast of 15 economists polled by The Associated Press was annualized growth of 3.4 percent.
GDP, or the total value of the nation's goods and services, has climbed for three straight quarters.
The figure corresponds to quarterly growth of 1.1 percent. Japan posted zero growth in the July-September quarter.
The results indicate that the world's second biggest economy continues to benefit from government stimulus measures around the world, which have bolstered global trade and persuaded Japanese households to increase spending on durable goods.
Government officials said they were encouraged by the latest numbers, particularly since it was the first time in seven quarters for domestic demand to push GDP higher. Consumer spending, which accounts for about 60 percent of the economy, rose 0.7 percent from the previous quarter.
Japan may now be strong enough to avoid falling back into recession, said Cabinet official Keisuke Tsumura, according to Kyodo News agency.
Corporate capital spending climbed 1 percent in the first expansion since January-March 2008. Public investment fell 1.6 percent.
The fourth quarter figures cap a miserable economic year overall that sent Japan to its steepest rcession since World War II. GDP fell a record 5 percent in 2009, the Cabinet Office report said in its report.
But robust overseas demand, particularly in the rest of Asia, has lifted Japan from recession.
Exports in December rose for the first time since the collapse of Lehman Brothers in late 2008, powering industrial production up 2.2 percent from the previous month.
The domestic economy, however, remains fragile and could drag growth in the months ahead as the impact of government incentives wane. Rattled by deepening deflation and falling wages, businesses remain cautious about spending and hiring.
Other major economies also face uncertainty ahead.
The U.S. economy expanded at an annual rate of 5.7 percent in the fourth quarter, but many analyst predict a slowdown this quarter as double-digit unemployment chills consumer spending.
The 16 countries that use the euro barely grew in the fourth quarter, as a modest recovery stalled amid turmoil in financially troubled members such as Greece and a flat performance from Germany, the biggest euro economy.
