The Japanese industrial production data for the last several months were drastically down, due to crashing exports to US and Europe. Now, the April 2009 industrial production has surprised every analyst, with a record 5.2% growth, which is the highest monthly achievement in the last 56 years.
The base effect helped push the growth rate to such a high level, say analysts. The industrial production revived in April more because of recovery in export orders.
The Japanese economy depends on exports of Automobiles and electronic items in a major way, and it cannot recover through domestic demand stimulation. The Japanese economy also faces demographic problems in terms of aging population, unlike China and India.