The World Bank has raised its forecast for Japan's economic growth this year to 1.5 percent, up 0.6 percentage point from its estimate in January, due to rising exports and a pickup in capital spending in preparation for the 2020 Olympic Games.

"Growth has picked up in 2017, supported by a recovery in external demand. Exports have strengthened," the bank said Sunday of the significant upgrade in its semiannual Global Economic Prospects report. "The pickup in capital spending has been supported by elevated corporate profits as well as preparations for the 2020 Tokyo Olympics."

The world economy is projected to expand 2.7 percent this year, unchanged from the January forecast, but risks to the outlook "remain tilted to the downside," the report says, citing "increased trade protectionism" and "elevated economic policy uncertainty" in a veiled reference to U.S. President Donald Trump's "America First" policy.