0508 GMT - Uncertainty over the effects of U.S. tariffs announced in April will likely weigh on Japan's economic growth, the IMF says in its latest report. The tariff uncertainty will likely offset strengthening private consumption driven by above-inflation wage growth, which is expected to boost household disposable income, it says. Industrial production in the country has also struggled to return to prepandemic levels, the IMF notes, as manufacturing activity continues to shift away from advanced economies to emerging-market economies. Japan's policy rates will rise gradually over the medium term to reach about 1.5%, in line with keeping inflation around the Bank of Japan's target of 2%, it says. The IMF lowers its 2025 GDP growth forecast for Japan to 0.6% from 1.1% previously. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
April 23, 2025 01:08 ET (05:08 GMT)
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