IMF raises Japan’s 2026 growth forecast to 0.7% — The Japan Times

The International Monetary Fund has raised its forecast for Japan’s economic growth in 2026 to 0.7%, 0.1 percentage points higher than its July estimate. The Japan Times reports, citing the IMF’s World Economic Outlook report.

Reason for the forecast revision

The fund explained the improved forecast by fiscal support measures that partly mitigate the impact of higher energy prices. The IMF left its forecast for Japanese economic growth in 2027 unchanged at 0.7%.

According to the fund’s assessment, Japan’s economic growth will stabilize at this level next year as the energy shock weakens and monetary policy gradually normalizes.

More current news is available on the UA.News Telegram channel Telegram.

Global forecasts and risks

The IMF also raised its forecast for global economic growth in 2026 by 0.1 percentage points, to 3.1%. Its forecast for 2027 remained at 3.4%.

The report states that global economic activity has once again demonstrated resilience, particularly due to significant investment in artificial intelligence, which helped reduce the consequences of geopolitical shocks. At the same time, the IMF pointed to predominantly downside risks: an escalation in the Middle East could restrain growth, while a reassessment of expectations for AI profitability and productivity could sharply reduce investment.