MNI BRIEF: IMF Ups Japan 2023 GDP View To 1.4% Vs. Apr 1.3%

The International Monetary Fund on Tuesday raised its forecast for Japan’s gross domestic product this year to 1.4% from April's 1.3% but left its 2024 growth forecast unchanged at 1.0%.

The IMF’s World Economic Output Update said pent-up demand and accommodative policies would support Japan's economy. “The Bank of Japan has kept interest rates near zero under the quantitative and qualitative monetary easing with yield curve control policy,” the IMF WEO Update said. “Global growth is projected to fall from an estimated 3.5% in 2022 to 3.0% in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook, it remains weak by historical standards. The rise in central bank policy rates to fight inflation continues to weigh on economic activity.”

The IMF warned inflation is easing in most countries but remains high, with divergences across economies and inflation measures.