IMF reduces 2023 Japan economic growth forecast to 0.3%, citing supply issues and reduced tourism.

The IMF has lowered Japan's economic growth forecast from 1.7% to 0.3% for 2023, citing automotive supply issues and reduced tourism. However, it expects a rebound to 1.1% by 2025, driven by rising real wages boosting consumer spending. Meanwhile, Japanese bond yields have surged to a 16-year high amidst global market shifts and speculation on interest rate changes by the Bank of Japan, which may hint at rate hikes in early 2024.