Japanese GDP growth surged to its fastest level

In over two years in Q1, accelerating to an annualized 5.9% from 0.3% in Q4 and breezing past consensus of 4.2%. The economy was boosted by personal consumption soaring 8.5% as shoppers went on a spree prior to sales tax rising to 8% from 5% on April 1. A 4.9% rise in capex also helped. The downside is that the economy is expected to pull back in Q2 now that VAT has gone up.