Japan's economy is expected to continue growing at a pace well above its potential, Bank of Japan Governor Haruhiko Kuroda said.

Kuroda made the comments at a press conference after the central bank upgraded its assessment of the country's economy in a quarterly report, citing solid production and exports.

Japan's potential rate of growth is estimated between 0.5 pct and less than one pct.

Kuroda brushed aside the view that labor shortages will restrain economic growth. "Labor shortages will help raise wages and boost capital spending in labor-saving technologies, thus promoting economic growth," he said as quoted by Jiji Press.

He said prices remain on track to achieve the BOJ's 2 pct inflation goal.