IMF lifts growth forecast for Japan economy to 2.4% in 2010+

WASHINGTON, July 7 Kyodo -
The International Monetary Fund on Wednesday lifted sharply its growth
projection for the Japanese economy to 2.4 percent for 2010, up from 1.9
percent in its April forecast, while revising upward its growth outlook for the
world economy by 0.4 percentage point to 4.6 percent this year.
As for 2011, however, the IMF's revised World Economic Outlook report trimmed
its growth estimate for the Japanese economy to 1.8 percent, compared with 2.0
percent in its April projection.
The updated report left its global growth estimate for 2011 unchanged at 4.3
percent.
The IMF said stronger-than-expected exports in the first half of 2010 are
largely attributable to the upward revision of the Japanese economic outlook.
But the Washington-based lender expects the Japanese economy to slow down in
2011 as fiscal stimulus is expected to taper off gradually.
Despite the upbeat outlook for the world economy this year, the IMF warned that
''Downside risks have risen sharply amid renewed financial turbulence.''
It also urged policymakers to take necessary steps to ensure a recovery can
take root, saying, ''The new forecasts hinge on implementation of policies to
rebuild confidence and stability, particularly in the euro area.''
The IMF also called on developed countries to make efforts to implement
credible fiscal consolidation through such measures as tax reforms.
The lender also noted the importance of accommodative monetary conditions and
structural reforms in helping boost growth and competitiveness of developed
countries.
The IMF now anticipates the U.S. economy to expand 3.3 percent in 2010, up from
3.1 percent in its April estimate, and to grow 2.9 percent the following year,
up from 2.6 percent.
Mirroring the sovereign debt crisis, the IMF remains cautious about the
prospects of the eurozone economy, maintaining its growth estimate of 1.0
percent for 2010.
The institution expects the eurozone economy to rise 1.3 percent in 2011, down
0.2 point from its previous estimate.
Turning to emerging economies, the IMF raised its growth projection for China
by 0.5 point to 10.5 percent for 2010, while cutting the outlook to 9.6 percent
for 2011, down 0.3 point from its April estimate.
Emerging economies are projected overall to swell 6.8 percent this year,
against the previous forecast of 6.3 percent, and expected to grow 6.4 percent
in 2011, down 0.1 point.
The IMF noted that emerging economies should help rebalance global demand,
through steps including greater exchange rate flexibility, apparent
encouragement for China to fully implement its currency reform.
==Kyodo
2010-07-09 00:07:58


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