MNI BRIEF: IMF Cuts Japan '21 GDP Outlook To +2.8%

The International Monetary Fund on Tuesday lowered its forecast for Japan's 2021 GDP to +2.8% from April's +3.3%, pushing the growth back a year and raising the 2022 growth forecast to +3.0% from April's 2.5%. "Japan is anticipated to see a stronger rebound in the second half of 2021, as vaccination proceeds and the economy fully reopens, improving its growth forecast for 2022," the IMF's World Economic Outlook Update said.

"These revisions reflect pandemic developments and changes in policy support. The 0.5 percentage point upgrade for 2022 derives largely from the forecast upgrade for advanced economies, particularly the United States, reflecting the anticipated legislation of additional fiscal support in the second half of 2021 and improved health metrics more broadly across the group," the forecast added.