Japan's economy grew at a 5.9 percent annual rate in the January-March quarter — the fastest rate in nearly three years — as companies and consumers stepped up buying ahead of an increase in the sales tax that is expected to cause a contraction in the current quarter.

The growth figures for the world's third-largest economy released Thursday were in line with expectations a pre-tax hike rush. Strong private consumption, residential investment and corporate spending were the biggest contributors to growth, while public spending fell slightly.