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    IMF Urges Japan to ‘Reload’ Abenomics Policy to Help Sluggish Growth

    © AFP 2019 / Yoshikazu TSUNO
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    The IMF called on Tokyo to turn the financial sector into a driver of reforms.

    MOSCOW (Sputnik) — The International Monetary Fund (IMF) advised Japan on Thursday to "remove uncertainty" about its economic policy over concerns that incomplete reforms were holding back domestic demand, according to an annual assessment by the international financial institution.

    In 2012, Prime Minister Shinzo Abe announced measures to halt economic stagnation. The so-called Abenomics measures included structural reforms, monetary easing and fiscal stimulus.

    The IMF Executive Board said in its 2015 report that, "Abenomics needs to be reloaded so that policy shortcomings do not become a drag on growth and inflation."

    The IMF urged the Abe government to proceed with its next round of reforms to "lift labor supply, reduce labor market duality, continue with agricultural and services sector deregulation and turn the financial sector into a driver of reforms."

    The IMF outlined a moderately positive future for Japan’s economic growth, with an annual rate of 0.8 percent this year and 1.2 percent in 2016. The IMF warned of risk from weak domestic demand and incomplete policies, particularly with regard to the fiscal consolidation and structural reforms.

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    Tags:
    International Monetary Fund, Abenomics, economy, Shinzo Abe, Japan
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