Japan's economy grew at an annual rate of 3.5% in the first three months of 2013

japan's economy kicked into high gear during the first quarter as policymakers worked to combat decades of falling prices and spur growth.

Japan's economy grew at an annual rate of 3.5% in the first three months of 2013, Japan's Cabinet Office said Thursday. The expansion was much quicker than the 2.7% increase expected by analysts.

On a quarterly basis, Japan's gross domestic product increased by 0.9%. Consumer spending and exports were particularly strong.

Japan's economy had been in a shallow recession as recently as last year, and the positive data should bolster hopes that the country's economic outlook is brightening. The growth should also provide a boost to Prime Minister Shinzo Abe's reform efforts -- a set of policies dubbed "Abenomics."

Abe argued forcefully that the Bank of Japan needed to take aggressive action to stimulate Japan's flagging economy -- and made that a centerpiece of his election campaign last year.

The idea is that further easing, combined with more government spending on economic stimulus, could push up prices and end years of deflation, leading to more robust growth for the world's third largest economy.

source: cnn