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IMF Warns Japan to Improve Fiscal Health Amid Rising Risks

The IMF urges Japan to improve its fiscal health due to increasing risks from natural disasters and social security costs. Japan's primary deficit is projected to widen, and its public debt remains high. The IMF stresses the need for fiscal consolidation and gradual monetary rate increases toward a neutral rate of 1.5% by the end of 2027. Despite positive signs for stable inflation, the BOJ is advised to remain cautious and flexible given global economic uncertainties.