Japan's economy grew faster than expected in the fourth quarter, spurred by a pickup in domestic consumer demand and robust exports, official data showed on Monday.
The world's second-largest economy expanded 1.1% in comparison with the previous quarter, whose growth was revised downward from 0.3% to zero. Economists had only expected growth of 1%.
Figures for the fourth quarter showed that capital spending rose 1%, while private consumption rose 0.7 %; public investment, however, fell 1.6%.
The results indicate that Japan continues to benefit from government stimulus measures around the world. These have apparently persuaded Japanese households to increase spending on durable goods and boosted global trade.
The figures cap a year that saw Japan fall into its steepest recession since World War II. According to the Cabinet Office, the country's GDP, or the total value of its goods and services, fell a record 5% in 2009.
Following the release of the data, the yen rose against the pound, with GBP/JPY shedding 0.16% to hit 141.04. But the Japanese currency fell against the euro and dollar: EUR/JPY rose 0.05% to hit 122.69 and USD/JPY rose 0.25% to hit 90.17.