Ⅰ Japan’s Economy Recovery Presents a Slow-down Trend

1.Japan’s economy continues the recovery situation in 2010，but the recovery rate slows down

From the data in Table 1 we can see that，the real gross domestic product（GDP）in the 1st quarter of 2010 grew by 1.6% sequentially through quarterly adjustment，increased by 0.6% compared with 1% in the 4th quarter of 2009，and continued the recovery situation since 2009. The GDP annualized rate in the 1st quarter grew by 6.6%. Wherein，the external demand drove the economic growth by 0.6%，the internal demand drove the economic growth by 1%，and the contribution of the internal demand growth to the economy was higher than the external demand growth.

In the 2nd quarter，affected by Europe’s sovereign debt crisis，the internal demand and the external demand slowed down and dragged Japan’s economic recovery trend，and the economic growth rate significantly slowed down. The chain growth of GDP in the 2nd quarter was 0.4% and slowed down by 1.2% compared with that in the 1st quarter，and the annualized rate grew by 1.8%. Wherein，the external demand drove the economic growth by 0.3% and the internal demand drove the economic growth by 0.1%.

The chain growth of GDP in the 3rd quarter，and the annualized rate grew by 3.9%. The economic growth situation in the 3rd quarter became better compared with that in the 2nd quarter，but greatly slowed down compared with the economic growth at the beginning of the year. Wherein，the contribution of external demand to the economic growth was 0%，and in the 3rd quarter，Japan’s economy totally depended on the driving of internal demand to the economic growth by 0.9%. That’s mainly because Japan’s environmental protection integral policy^[1] became due in the 3