The International Monetary Fund has revised downward its forecast for Japan’s economic growth this year, citing a temporary supply disruption in the car industry over test data scandals.
The IMF says Japan’s economy will grow 0.3 percent, down 0.4 points from its previous estimate.
In its report released on Tuesday, the IMF forecasts the global economy will grow 3.2 percent this year, unchanged from its previous figure in July.
It says the United Sates will see growth of 2.8 percent, up 0.2 points from the July forecast. The IMF mentions as a main reason stronger outturns in consumption amid robust increases in real wages, as well as higher stock prices.
The IMF says China’s economy will grow 4.8 percent, down 0.2 points. It cites persisting weakness in the real estate sector, but projects growth to slow only marginally, largely due to better-than-expected exports.
As for the future outlook, the IMF says the level of uncertainty is high, citing elections held or upcoming in many countries this year. It adds that newly elected governments could introduce significant shifts in trade and fiscal policy.
It also says further intensification of geopolitical rifts could weigh on trade and investment.