Pakistan, Jan. 19 -- The International Monetary Fund (IMF) has revised up Japan's economic growth forecast for 2026. The IMF now expects Japan's economy to expand 0.7%, slightly higher than its previous 0.6% estimate. Growth is supported by the government's record fiscal stimulus package and steady domestic demand, helping the country manage slowing global trade and inflation pressures.

Japan's economy grew 1.1% in 2025, reflecting a strong post-pandemic recovery, but growth is expected to slow slightly in 2026. For 2027, the IMF forecasts growth of 0.6%, citing modest investment and cautious consumer spending. The IMF also expects Japan to gradually raise policy rates while maintaining fiscal support to sustain growth and stability in t...