TOKYO: Japan should withdraw fiscal support related to the COVID-19 pandemic in a timely manner, the Executive Board of the International Monetary Fund said Friday.

The country should shift to “better targeted fiscal support to vulnerable households,” the board said, stressing that its medium-term policies should “focus on reducing fiscal vulnerabilities.”

While the Japanese financial sector has been robust, “interest-rate and credit risks have increased and warrant close monitoring,” the IMF board said.

The IMF cut its growth outlook for Japan’s real gross domestic product to 1.3 percent for 2023 from 1.8 percent, and raised its 2024 forecast to 1.0 percent from 0.9 percent.

Jiji Press