IMF Cuts 2021 Growth Forecast for Japan to 2.4 Pct

Economy

Washington, Oct. 12 (Jiji Press)--The International Monetary Fund said Tuesday it has cut its 2021 growth forecast for Japan to 2.4 pct due to a COVID-19 state of emergency amid the spread of the coronavirus delta variant.

The new forecast is down 0.4 percentage point from the Washington-based institution's previous projection made in July.

The downward revision reflects "the effect of the fourth State of Emergency from July to September as infections hit a record level in the current wave," the IMF said.

Japan expanded its coronavirus state of emergency in July, placing Tokyo and some other areas under the measure for the fourth time. The emergency was fully lifted at the end of September.

The IMF raised its 2022 growth forecast for Japan by 0.2 point to 3.2 pct.

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