The International Monetary Fund on Tuesday lifted its 2023 growth forecast for Japan to 2%, up from its 1.4% prediction in July, citing "a surge in inbound tourism" as one of the major factors.
As more foreign travelers choose Japan as a holiday destination, drawn by their much-increased spending power due to the yen's recent weakness, the notable revision to the IMF's World Economic Outlook report is also attributed to pent-up demand, a pickup in auto exports and the impact of long-standing accommodative monetary policies.
After being hit hard by supply chain disruptions during the COVID-19 pandemic, Japan's auto and other export-oriented manufacturing industries have been recovering.