The latest and better than expected gross domestic product report underscores that the economy continued to recover from the worst recession in decades in the fourth quarter of 2009 and signaled a lessened possibility that a double-dip recession will occur.
This may be encouraging news for the Democratic Party of Japan-led government, which is suffering from falling support rates ahead of the Upper House election in July.
But analysts warn that the pace of economic growth could slow prior to the July election because the impact from stimulus measures mapped out by the previous government is expected to wane.