Japanese economy emerges from recession

Analysts say lower-than-forecast growth of 2.2% highlights a fragile recovery and underscores challenges facing Tokyo

Japan's economy rebounded from recession in the final quarter of last year but growth was weaker than expected as household and corporate spending disappointed, underlining the challenge the prime minister, Shinzo Abe, faces in shaking off decades of stagnation.

The annualised 2.2% expansion in October-December was smaller than a 3.7% increase forecast in a Reuters poll, suggesting a fragile recovery as the hangover from last year's sales tax hike lingered.