Japan to hit 2% inflation target in near term — IMF

Japan is showing promising signs of nearing its central bank's 2% inflation target, International Monetary Fund (IMF) officials report. With strong domestic demand and continued foreign investment, GDP growth is projected to hold steady at 0.5% in the short term. The IMF notes that the risks to both indicators seem to be balanced.

After three decades of near-zero inflation, Japan is beginning to bear the marks of economic equilibrium. Concerns about a rebound in consumer prices are gradually easing, while GDP continues to grow moderately.

Still, the IMF underscores potential external dangers. On Wednesday, US President Donald Trump announced new sweeping tariffs against key trading partners. Nevertheless, he avoided mentioning 24% duties on Japanese imports. If such tariffs are enacted, the IMF warns that Japan's economy could face significant challenges.

In February, Japan's core inflation was 3.7%, above the central bank's target, largely due to rising food prices hitting households.