IMF Ups Japan Growth Estimate for 2020 to 0.7 Pct

Economy

Davos, Switzerland, Jan. 20 (Jiji Press)--The International Monetary Fund on Monday revised up its real economic growth forecast for Japan this year to 0.7 pct, citing effects of the Japanese government's stimulus package aimed at easing the pain of the consumption tax hike last October.

The figure, shown in the IMF's updated World Economic Outlook report, is up by 0.2 percentage point from the Washington-based institution's growth forecast made in October for the Asian country. Japan raised the tax rate to 10 pct from 8 pct on Oct. 1, following a 3-point hike in April 2014.

Meanwhile, the IMF lowered its global economic growth projection for 2020 by 0.1 point to 3.3 pct, noting that punitive U.S. tariffs on Chinese products will remain in place after the much-awaited "phase one" agreement, reached between the world's two biggest economies last week to ease their trade tensions, and that the pace of growth of the Indian economy will slow.

"We already see some tentative signs of stabilization," IMF Managing Director Kristalina Georgieva said at a press conference, adding, "Recent data suggest that trade and industrial output are bottoming out."

She warned, however, "We have not reached a turning point yet."

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