The International Monetary Fund , or IMF, may upgrade its growth forecast for Japan , although the nation must start fiscal and structural reforms in 2014, its senior official said. The IMF's economic growth forecast for Japan of 1.2 per cent next year will probably rise because of extra stimulus measures, IMF first deputy managing director David Lipton was cited as saying in an interview in the Financial Times. The government expects gross domestic product to increase 1.4 per cent, according to budget documents released on December 22 . Prime Minister Shinzo Abe took office in December 2012 pledging a three-pronged strategy of aggressive monetary easing, fiscal stimulus and deregulation to end 15 years of deflation. "The first year was a year of opportunity for monetary policy and I think they hit the target and showed they were changing the trajectory for the economy," Lipton was cited as saying. "The second year they have the opportunity to show that the second and third arrows are potent. It doesn't mean they have to finish but they really have to start." The nation's target of two percent inflation in about two years through the Bank of Japan's bond-buying programme had led to a weaker yen, which "the international community is supportive of," Lipton said.
Most Popular Stories
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- FAA to Appeal Court Decision Allowing Commercial Drone Use
- New Chat App, Yik Yak, Causes Problems for Students
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- Obama Meets with Ukraine Prime Minister Wednesday
- Gas Prices May Jump from Calif. Emissions Law