IMF Warns of Downside Risks to Japan's Economic Growth
Washington, April 2 (Jiji Press)--The International Monetary Fund on Wednesday warned of downside risks to Japan's economic growth, stressing the need for the country to continue to rebuild fiscal buffers and re-anchor inflation expectations.
"Risks to growth are tilted to the downside," the IMF's Executive Board said of the Japanese economy.
The board said that a gradual withdrawal of the Bank of Japan's monetary accommodation "will be appropriate" if its baseline forecast materializes.
The IMF board welcomed Japan's longstanding commitment to a flexible exchange rate regime and underscored "the importance of limiting foreign exchange intervention to exceptional circumstances."
The board said it expects Japan's real gross domestic product growth to rise to 1.2 pct in 2025 from 0.1 pct in 2024. It forecast inflation in the country at 2.4 pct in 2025.
(2025/04/03-09:53)
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