The International Monetary Fund has cut its 2019 economic growth forecast for Japan for the third time this year amid heightened risks from the global slowdown and is calling on the government not to tighten its spending stance for now.
The IMF reduced its growth forecast from 0.9 percent to 0.8 percent, with the economy set to decelerate to 0.5 percent next year, matching the country's potential growth rate.
Speaking in Tokyo at the conclusion of the fund's annual mission to review the economy, IMF Managing Director Kristalina Georgieva called for continued spending to prop up growth and prices as the resilience of Japan's domestic demand is being tested by the synchronized global slowdown.