According to International Monetary Fund (IMF) Asia-Pacific Department Director Anoop Singh, the first phase of Japan Prime Minister Shinzo Abe's economic stimulus program had prevented the national economy from feeling the effects of the current situation in the US. Singh made the pronouncement at a Tokyo seminar on Japan's set of stimulus policies called "Abenomics".
Earlier, the US Federal Reserve had announced a reduction of buying securities in its asset-buyingprogram. Singh said the first part of the Abenomics program increased bank lending and direct foreign investment into Japan.
Singh, said that Japan's next task was to have a private-demand led, self-sustained economic growth.
"Over the medium term, Japan will need to achieve higher growth, which is essential to ensure fiscal sustainability and lower public debt," Singh said.
When discussing about the monetary easing efforts of the Bank of Japan, Singh encouraged the central bank to plan for exit risks before taking risks. The country's central bank intended to achieve a 2% inflation within a two-year period.
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