The International Monetary Fund sharply raised its economic growth estimate for Japan in a report released Tuesday, saying the central banks' new monetary easing policy will provide substantial stimulus.

In its semiannual World Economic Outlook report, the IMF projected that the nation's economy will grow 1.6 percent this year in terms of inflation-adjusted gross domestic product, up from 1.2 percent in its January estimate.

The Washington-based organization also doubled its 2014 growth forecast for Japan to 1.4 percent from the earlier projected 0.7 percent.