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Economy

Japan's GDP surprises with 2.1% rise in first quarter

Result buoys Abe's tax hike plan but underlying data shows weakness

High-rise residences in Tokyo: Japan's economy grew for the second straight quarter. (Photo by Kosaku Mimura)

TOKYO -- Japan's economy unexpectedly grew in the first quarter, giving Prime Minister Shinzo Abe some momentum to go ahead with his plan to raise the country's consumption tax this fall.

Gross domestic product for the quarter expanded at an annualized rate of 2.1%, preliminary figures released by the Cabinet Office showed on Monday, much better than the 0.2% contraction forecast by economists in a Reuters poll.

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