According to government data, Japan’s economy grew by one percent between January and March compared to the previous three months.
It means the Asian nation has outperformed the US, Germany, Britain and France.
The growth is being put down to billions of euros worth of investment, after last year’s devastating earthquake and tsunami.
There has also been an improvement in private consumption helped, in part, by government subsidies for buyers of fuel-efficient cars.
However, amid the optimism, there is also caution. Analysts do not think it is a rebound. When you also throw eurozone debt fears and a slowdown in China into the mix, the feeling is that Japan’s performance will not be long-lasting.