IMF raises forecast for Japan’s economy this year
The International Monetary Fund sees Japan’s economy growing faster than previously expected this year, citing a boost from the stimulus package unveiled last month by Prime Minister Shinzo Abe.
The IMF now forecasts Japan’s economy will expand 0.7% in 2020, up from a 0.5% forecast in October.
Although the IMF forecasts slower growth of 0.5% in 2021 once the fiscal stimulus-boost fades, the fund’s more optimistic near-term projections are likely to relieve even more pressure from the Bank of Japan ahead of a rate decision today.
All 42 economists surveyed by Bloomberg forecast the bank will stand pat on policy this week and raise its growth forecasts for Japan in a quarterly outlook report due the same day.
In its last report, in October, the BOJ predicted Japan’s economy would grow 0.6% in the year through March 2020. It also projected 0.7% growth for the next fiscal year, which is half the rate estimated by the government after releasing its stimulus plan. MDT/Bloomberg
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