Tokyo Games to Have Little Effect on Japan Economy: IMF Economist

Economy Tokyo 2020

Washington, July 27 (Jiji Press)--Gita Gopinath, chief economist of the International Monetary Fund, said Tuesday that the Tokyo Olympics, currently held without spectators at most venues due to the novel coronavirus pandemic, will not have a significant impact on the Japanese economy this year.

The Olympics "is not the biggest factor for growth projections," she told a press conference.

While infrastructure spending related to the Tokyo Games had the "biggest kick on" Japan's gross domestic product, such spending "was done in the past," she explained.

Meanwhile, Gopinath said that the IMF in compiling its most recent economic outlook on Japan did not take into account the Japanese government's fourth state of emergency over the spread of the coronavirus, which was issued this month for Tokyo.

She warned that "there is a further downside risk" to Japan's economic growth coming from the latest state of emergency.

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Jiji Press Tokyo 2020