"I will do my best to realize stable economic growth with innovation and an open mind, which will bring vitality to the Japanese economy," Abe, who was elected the nation's youngest post-war premier last week, told parliament.

In July, the government of then prime minister Junichiro Koizumi raised its forecast for gross domestic product (GDP) growth for the year to March 2007 to 2.1 percent from an earlier estimate of 1.9 percent.

On a nominal basis, or before adjustments for changes in prices, the government had forecast growth of 2.2 percent for the same period, faster than the 2.0 percent pace previously predicted.

The International Monetary Fund (IMF) said last month that the world's second-largest economy was set to grow by 2.7 percent in 2006, up from 2.6 percent in 2005, before slowing to 2.1 percent in 2007.

Abe meanwhile called on the Bank of Japan to maintain an easy monetary policy amid intense speculation about when the central bank will next lift interest rates.

"The government and the Bank of Japan will form a united front to achieve sustainable growth led by the private sector," he said.

"We hope that the (Bank of Japan) will continue to support the economy from a monetary point of view," added Abe, who has made clear previously that he believes the central bank should move cautiously on raising rates.

The Bank of Japan policy board voted unanimously on July 14 to lift the benchmark rate of borrowing to 0.25 percent amid signs the Japanese economy is recovering.

The central bank had kept interest rates at zero since 2001 in a bid to defeat Japan's long scourge of deflation and stimulate the economy.