News Room - Business/Economics

Posted on 16 Jul 2009

IMF says Japanese economic outlook uncertain

The International Monetary Fund says Japan's economy will shrink by 6 percent over the course of 2009.

 

It called the outlook for the country with the world's second largest economy uncertain but predicted a recovery in 2010.

 

In its annual snapshot of the Japanese economy issued Wednesday, the IMF said the recovery will hinge on improvement in overseas lending conditions and trade.

 

The IMF says a decline in demand for Japanese products and the spillover from the global recession and credit crunch plunged Japan's economy into a severe recession.

 

The IMF praised Japanese authorities for measures they took to combat the crisis, including lending money to cash-strapped companies.