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Economy

Aging Japan faces 25% drop in GDP, IMF warns

Report urges Tokyo to tackle painful economic reforms

More than 20% of Japan's population is now 70 or older.   © Reuters

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.

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