IMF Cuts 2021 Growth Forecast for Japan to 2.8 Pct

Economy

Washington, July 27 (Jiji Press)--The International Monetary Fund on Tuesday cut its 2021 growth forecast for Japan to 2.8 pct, the lowest among advanced economies, citing the impact of COVID-19 restrictions.

The new forecast is down 0.5 percentage point from the Washington-based institution's projection made in April.

The downward revision reflects "tighter restrictions in the first half of the year as caseloads picked up," the IMF said.

The institution raised its 2022 growth forecast for Japan by 0.5 point to 3.0 pct, saying that the country is "anticipated to see a stronger rebound in the second half of 2021, as vaccination proceeds and the economy fully reopens."

There will be little impact from holding the Tokyo Olympics without spectators at most venues and scaling down related events, the IMF said. But restrictions on tourism and restaurants and bars, if prolonged, could put downward pressure on growth, it said.

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