The government Wednesday upgraded its assessment of the economy for the first time in six months as rising production and exports as well as solid consumption provided yet more evidence the nation has entered a period of sustainable growth.
"The economy is recovering," the Cabinet Office said in its monthly economic report for February, shedding the phrase "at a moderate pace" from the January report.
The office said the domestic demand-led recovery "is expected to continue, as resiliency in the corporate sector is extending into the household sector."
But it said continued high oil prices pose a risk to the domestic and overseas economies, especially when the standoff over Iran's nuclear designs has sparked concern over stable supplies in the global oil market.
The upbeat assessment and outlook followed Friday's release of gross domestic product data for the October-December quarter, which showed an annualized 5.5 percent growth in real terms, outpacing growth rates of the U.S. and Europe.