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.
