An Aug. 15 preliminary report by the Cabinet Office shows that Japan's gross domestic product (GDP) in real terms in the second quarter of 2011 dropped 0.3 percent or an annualized 1.3 percent from the previous quarter — for the third straight quarter of minus growth.

But the margin of the drop is much smaller than the previous drop of an annualized 3.5 percent.

Economic and fiscal policy minister Kaoru Yosano said that the minus growth is a temporary phenomenon due to the March 11 earthquake and tsunami, and that high growth can be expected in the last half of fiscal 2011.