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TOKYO: Japan’s economy is expected to grow 1.4% this year, ahead of the 1.0% growth in 2022, the International Monetary Fund (IMF) said on Tuesday as the lifting of pandemic containment measures boosted consumption.

The IMF also said that as Japan maintains ultra-accommodative monetary policy and massive fiscal stimulus to cushion the blow from rising costs of living, it is “accommodative policy” that is supporting growth.

Japan’s growth projections for 2023 are about the same as the average 1.5% growth rate estimated by the IMF for advanced economies.

The IMF said in its World Economic Outlook report that it expects growth in the world’s third-largest economy to slow to 1.0% in 2024 as the effects of past stimulus measures wear off.

The IMF’s forecast comes ahead of the Bank of Japan’s high-profile policy meeting that concludes on Friday, when it plans to release a new quarterly forecast and discuss how well the economy is progressing toward sustainably achieving its 2% inflation target. IMF expects Japan’s economy to grow 1.4% this year on pent-up demand

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