"Growth has picked up in 2017, supported by a recovery in external demand," the World Bank said in its latest Global Economic Prospects report.

"Exports have strengthened, especially for information technology-related products and capital goods," the bank also said. "Business investment has gained momentum."

The World Bank projected that a revision to the Japanese government's calculation method will also help push up the country's GDP over the medium term.

The institution also said Japanese economic growth is expected to slow down in 2019 due to a planned consumption tax increase.

In the report, the World Bank's global economic growth forecast for 2017 was unchanged at 2.7 percent.

As for downside risks, the report cited uncertainty over the economic policies in the United States and heightened tensions over North Korea.

The bank revised up its growth projection for the eurozone by 0.2 point to 1.7 percent in 2017, while lowering its estimate for the US economy by 0.1 point to 2.1 percent.

The report said that US economic growth is expected to accelerate in the short term if the administration of President Donald Trump implements tax cuts and infrastructure investment.

In that case, the Federal Reserve is likely to tighten its monetary policy at a faster pace, according to the report.

It also referred to possible damage to economic activity in the United States and its trading partners if the country takes protectionist trade policy measures. (Jiji Press)