IMF revises up Japan 2017 growth estimate to 1.5%

October 11, 2017

WASHINGTON- The International Monetary Fund said Tuesday that it projects the Japanese economy to grow 1.5 percent in 2017, up 0.2 percentage point from its previous forecast released in July.

In its latest World Economic Outlook report, the IMF also raised its growth projection for the world economy by 0.1 point to 3.6 percent, on the back of brighter outlooks mainly for the United States, Europe and China.

In Japan and the eurozone, "stronger private consumption, investment, and external demand bolstered overall growth momentum" in the first half of 2017, the report said.

The 2018 estimate for Japan was revised up by 0.1 point to 0.7 percent. But the rate remained lowest among the advanced economies, due to falling potential growth rate reflecting the aging and decreasing population.

The IMF also raised its growth estimate for the United States by 0.1 point to 2.2 percent for 2017 and 0.2 point to 2.3 percent for 2018. The changes reflected "very supportive financial conditions and strong business and consumer confidence," the report said, while it cited the country's "significant policy uncertainty."

The IMF warned that the US Federal Reserve's interest rate hike and tapering of its balance sheet may have negative impact on emerging markets. Jiji Press