TOKYO, Nov 16 (Reuters) - Japan's economy grew 1.2 percent in July-September from the previous three months, marking a second straight quarterly expansion, but analysts warn the recovery may lose momentum in coming quarters due to weak domestic demand.
Growth in the world's No.2 economy was fuelled by the continued effects of stimulus spending by governments around the world. It followed expansions in other major economies including the United States and Europe, signalling the end of the worst recession in 70 years.
The increase was greater than a median market forecast of a 0.7 percent rise. Exports and personal consumption led the growth, while corporate investment picked up for the first time since the January-March quarter of 2008.
Japan's gross domestic product (GDP) figure translated into an annualised increase of 4.8 percent, bigger than a 2.9 percent expansion expected by economists.
The U.S. economy grew at an annualised clip of 3.5 percent in July-September. GDP in the euro zone rose 0.4 percent on the quarter, after five straight quarters of contraction.
Economists polled by Reuters expect Japanese growth to slow to 0.1 percent in the first three months next year as the impact of stimulus measures enacted by the country's previous government fades more quickly than initially thought. (Reporting by Tetsushi Kajimoto and Stanley White)