IMF Cuts 2022 Growth Forecast for Japan to 2.4 Pct

Economy

Tokyo, April 7 (Jiji Press)--The International Monetary Fund, in a report released on Thursday Japan time, said that it has cut its 2022 growth forecast for Japan to 2.4 pct.

The new forecast is down 0.9 percentage point from the Washington-based institution's previous projection made in January.

While noting that the Japanese economy is recovering thanks to the government's strong policy support and high COVID-19 vaccination levels, the IMF said in the report that "the pace of recovery for domestic demand will be slowed" by surging commodity prices, including crude oil prices, and heightened uncertainty following Russia's invasion of Ukraine.

On Japan's price developments, the IMF said that inflation in the country "remains well below" the Bank of Japan's 2 pct target. It said that the country's consumer price index is projected to rise only one pct in 2022.

According to the report, the IMF's executive board members agreed that the BOJ's massive monetary easing policy "remains appropriate."

[Copyright The Jiji Press, Ltd.]

Jiji Press