## Japan: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan

_IMF Staff Country Reports, July 31, 2017_

## Source details

**Canonical URL:** [Japan: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan](https://www.imf.org/en/publications/cr/issues/2017/07/31/japan-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-45149)

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## Bibliographic details
- Published: July 31, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484313411.002

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### Summary and key findings
- Japan’s economy is growing above potential, narrowing the negative output gap.
- The expansion is broader and more balanced than in 2015:
  - Private consumption growth turning positive.
  - Private investment strengthening on the back of residential investment.
- Labor shortages are evident.
- Wage growth remains weak.
- Inflation is stubbornly low.
- Growth momentum will carry through 2017 but would weaken in 2018 if fiscal support fades as currently scheduled.
- The fiscal stimulus package supports 2017 growth through higher consumption and investment.
- Monetary policy is expected to remain accommodative and facilitate a virtuous cycle between credit and economic growth.

### Economic outlook and scenarios
- Short-term (2017): Growth momentum continues, supported by fiscal stimulus and accommodative monetary policy.
- Medium term (2018): Growth would weaken if fiscal support fades as currently scheduled.

### Policy implications and emphasis
- Fiscal policy:
  - Fiscal stimulus package supports 2017 growth via higher consumption and investment.
  - Continued fiscal support appears critical to sustain momentum into 2018.
- Monetary policy:
  - Expected to remain accommodative.
  - Role in facilitating a virtuous cycle between credit and economic growth is highlighted.
- Labor market and wages:
  - Labor shortages pose constraints.
  - Weak wage growth limits domestic demand and inflationary pressures.
- Inflation:
  - Remains stubbornly low despite growth above potential.

### Publication metadata and classification
- Publication title: Japan: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan
- Publication date: July 31, 2017
- Pages: 84
- Volume: 2017
- Issue: 242
- Series: Country Report No. 2017/242
- DOI: https://doi.org/10.5089/9781484313411.002
- Stock No: 1JPNEA2017001
- ISBN: 9781484313411
- ISSN: 1934-7685
- Subject: Income, Inflation, Labor, Labor markets, National accounts, Prices, Wages
- Keywords: Asia and Pacific, consultation, CR, current account norm, exchange arrangement, fiscal policy, Global, Income, Inflation, ISCR, Japan, Japan-EU EPA, Labor markets, market, money market rate, net export, SDR million, social security system, Wages

*International Monetary Fund. Japan: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Japan (July 31, 2017).*

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## Content in this bundle

- **Country Report**
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_Source: https://www.imf.org/en/publications/cr/issues/2017/07/31/japan-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-45149_