TOKYO (Reuters) – Japan’s economy is expected to expand 1.4% this year, faster than a 1.0% rise in 2022, as removal of pandemic curbs boost consumption, the International Monetary Fund (IMF) said on Tuesday.
The IMF also cited “accommodative policies” as underpinning growth, as Japan maintains ultra-loose monetary policy and big fiscal spending to cushion the blow from rising living costs.
Japan’s 2023 growth projection is roughly around the average 1.5% expansion estimated by the IMF for advanced economies.
Growth in the world’s third-largest economy is expected to slow to 1.0% in 2024 as the effect of past stimulus measures dissipate, the IMF said in its World Economic Outlook report.
The IMF’s projections come ahead of the Bank of Japan’s closely-watched policy meeting that concludes on Friday, when it will issue fresh quarterly projections and debate how much progress the economy is making in sustainably hitting its 2% inflation target.
(Reporting by Leika Kihara; Editing by Shri Navaratnam)
