The International Monetary Fund projects that the Japanese economy will continue to recover this year. But it warns of downward risks, including price hikes.

IMF economist Ranil Salgado shared the analysis in Tokyo. He said that consumption will rebound as coronavirus restrictions are lifted, helping the economy continue to recover. The IMF forecasts Japan's economic growth this year at 2.4 percent.

He also pointed out downward risks such as supply chain disruptions caused by the pandemic, as well as geo-political tensions due to Russia's invasion of Ukraine.

Salgado said the Japanese government is taking appropriate measures to bolster the economy.
But he also stressed that after the economy recovers, it will be important to continue efforts for fiscal reconstruction.