Japan GDP Grows 4.8% at Annual Pace

TOKYO -- Japan's economy expanded at an annual pace of 4.8% in the third quarter, the government said, marking the second straight quarter of growth and the biggest rise in real gross domestic product since 2007.

On a quarterly basis, GDP was up 1.2% in July-September from the previous three-month period, according to the Cabinet Office's preliminary data.

Stocks in Japan were trading lower by 0.04% Monday.

The figure beat Kyodo news agency's forecast for an annualized increase of 2.6% and quarterly growth of 0.6%.

GDP, or the total value of the nation's goods and services, rose at a revised annual pace of 2.7% in the April-June period after posting a record decline in the first quarter.

Driving the third-quarter economy was a 1.6% increase in capital spending by companies, bolstered by recovering global demand.

Japan's economy, which relies heavily on the world to buy its cars and gadgets, fell into its worst recession since World War II earlier this year in the wake of the global financial crisis.

According to Kyodo, Deputy Prime Minister Naoto Kan said the figures reflected the ongoing economic recovery in Japan and the world.

Emergency spending by governments around the world has kickstarted demand, particularly in China and the rest of Asia. Exports jumped 6.4% from the April-June period, the Cabinet Office said.

Japan's factory output rose for the seventh straight month in September and "continues to show an upward movement," the government said last month.