WASHINGTON -- Japan's gross domestic product could fall by over 25% in the next 40 years as its population declines, the International Monetary Fund said Wednesday, urging the government to boost productivity through structural reform to mitigate the damage.
A rapidly aging and shrinking population "implies a commensurate drag on real output" under current policies, the IMF said in its annual report. The organization consults every year with member countries to get a sense of their economic conditions.
