Japan's big economic boost beats forecasts

TOKYO: Japan's economy expanded at the fastest pace in more than two years in the third quarter, led by a rebound in domestic demand that may ease concern of a return to recession next year.

Gross domestic product rose at an annual 4.8 percent pace, more than the forecasts of all 20 economists in a Bloomberg News survey, after a 2.7 percent gain in the second quarter, Cabinet Office figures showed in Tokyo. It was the second straight advance after the nation's deepest postwar recession.

Faster growth in the world's second-largest economy underscores a strengthening global recovery, after reports last week showed accelerating Chinese industrial production and a return to growth in the euro region. At the same time, Japan's policy makers need to maintain monetary and fiscal stimulus to buttress the rebound, Deputy Prime Minister Naoto Kan said.