Shinzo Abe, prime minister, answering questions at the meeting of the Budget Committee of Japan's House of Councillors, Tokyo, May 15, 2013

Japan today reported strong first quarter growth with a rise in consumer spending and exports signalling that the aggressive monetary policies of Shinzo Abe, prime minister, have boosted confidence and may have a sustained impact on the economy.

The Cabinet Office in Tokyo reported Thursday that real gross domestic product (GDP) rose 0.9% in the first three months to March, or 3.5% in annualised terms. It was the second consecutive quarter of growth, after a rise in the last quarter of 2012 that was revised upward to 0.3%.

"Starting with a rise in consumer spending, the effects of the economic policies of (Prime Minister Shinzo) Abe's cabinet are beginning to be seen," Akira Amari, economy minister, said after the release of the data, according to The Wall Street Journal.

Since taking office in late December pledging to pull Japan out of 15 years of deflation, Abe's government has implemented a ¥13.1tn ($131bn) spending package and appointed a new Bank of Japan governor who orchestrated the central bank's plan to pump money into the economy through massive purchases of government bonds to raise inflation to 2% in two years. 

The prime minister is planning to soon announce deregulation and other long overdue reforms.

Japan's growth rate, adjusted for price levels, outpaced the US January-March annualised expansion of 2.5%, as well as the Eurozone's 0.9% contraction announced Wednesday.

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