Tuesday, 12th April 2011
In Business In Japan,
IMF cuts Japan growth forecast to 1.4 per cent
Business in Japan looks set for a subdued year, after the International Monetary Fund (IMF) downgraded the country's economic growth projection to 1.4 per cent.
The IMF estimated in January that the Japanese economy would grow by 1.6 per cent this year, the Associated Press reports, but the revised estimate issued yesterday (April 11th) factors in the impact of the March 11th earthquake.
Macroeconomic damage to Japan is likely to remain limited, the IMF said, although "uncertainty remains elevated".
"While the immediate concern in Japan should be to support reconstruction, measures that support a reduction of public debt over the medium term need to be specified," the report added.
Furthermore, the global bank estimates that the damage done by last month's natural disasters is likely to wipe three to five per cent off Japan's GDP.
This news comes after the International Atomic Energy Agency upgraded the crisis at the Fukushima nuclear plant to a maximum level of seven, putting it on a par with the 1986 Chernobyl disaster.
Written by Susan Ballion
Related news stories:
Japan considers $60bn loan to IMF (16th April 2012)