The head of the IMF Thursday called for an overhaul of Japan’s economic policy, as the world’s third-biggest economy battles stubborn low inflation, sluggish growth and a rapidly aging population. Christine Lagarde called for a "fresh look" at "Abenomics", the economic policy of
The head of the IMF Thursday called for an overhaul of Japan’s economic policy, as the world’s third-biggest economy battles stubborn low inflation, sluggish growth and a rapidly aging population.
Christine Lagarde called for a “fresh look” at “Abenomics”, the economic policy of Prime Minister Shinzo Abe, which combines ultra-loose monetary policy with fiscal stimulus and structural reforms.
“We believe that it will require a revamping of policies. The basic principles in our view are still valid but need to be broadened, sustained and accelerated,” said Lagarde.
She warned that the economic challenges facing Japan will “only grow as Japan’s population continues to age and shrink,” noting that both the size of the economy and the population would contract by a quarter over the next 40 years.
The IMF predicted a growth rate of 1.1 percent this year, declining to 0.
