Japan: 2023 Article IV consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan
IMF Staff Country Reports, March 30, 2023
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- Japan: 2023 Article IV consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan
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Bibliographic details
- Published: March 30, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237362.002
Macro outlook and near-term projections
- The Japanese economy continues to recover driven by domestic demand while a weaker global economy has been weighing on external demand.
- The economic recovery is projected to continue in the near term amid pent-up demand, supply chain improvements, border reopening and policy support.
- Inflation is expected to rise further in early 2023, reflecting the delayed effect of yen depreciation and border reopening before declining again.
- While domestic risks are balanced, there are significant external downside risks to growth.
Key policy findings and recommendations
- Structural policies should help:
- boost income growth,
- support start-ups,
- deepen digitalization, and
- achieve climate targets.
- Labor market policies should:
- encourage more women and older persons to join the work force, and
- reduce labor market duality.
- Higher carbon pricing could help Japan achieve its climate targets in a growth-friendly way.
Subjects and keywords (as listed)
- Subjects: Climate change, Environment, Income, Inflation, Inflation targeting, International organization, Labor, Monetary policy, National accounts, Prices, Wages
- Keywords: Asia and Pacific, base wage growth, Climate change, Global, Income, Inflation, Inflation targeting, JGB yield, money market rate, staff appraisal, ultra-loose policy, Wages
Content in this bundle
- 1jpnea2023001