Economic Buzz: IMF sees Japan nearing 2% inflation target, growth at 0.5%

The IMF is optimistic about Japan reaching the BoJ?s 2% inflation target, backed by strong consumption and capital spending. After years of near-zero inflation, Japan?s economy is stabilizing, with 2024 growth projected at 0.5% and inflation at 2%. However, risks remain from a global slowdown and weak domestic demand. February?s 3.7% inflation, driven by high food costs, is expected to ease. The IMF suggests gradually scaling back monetary support if trends hold. Japan?s GDP is forecast to grow 1.2% in 2025, with inflation slowing to 2.4%. The BoJ?s recent rate hike to 0.5% reflects confidence in economic progress.

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