The IMF’s warning comes as Japan ramps up spending to address a broad spectrum of needs ranging from bolstering national defense to efforts to raise the birthrate.
Japan must act immediately to improve its fiscal health as the risks of natural disasters mount and social security costs continue to increase, according to the International Monetary Fund’s mission chief for the nation.
“There is limited space today in Japan to address shocks,” warned Nada Choueiri, the IMF’s Japan mission chief in an interview in Tokyo on Thursday. “Japan needs to plan today for where to find the space to accommodate” fiscal spending needs without increasing its deficits, she added.
