The International Monetary Fund will cut its forecast for Japan's gross domestic product for 2001 to a contraction of a real 0.2% from a growth of 0.6%, according to an international monetary source.
The IMF also plans to lower its projection for Japan's real GDP growth in 2002 to 0.5% from 1.5%, the source said. The IMF is due to announce the revisions on Friday.
The revisions were decided last week after the IMF's executive board approved a staff report on Japan's economy which took a dimmer view on growth, the source said.
He added that growth outlook for virtually all major economies will likely be downgraded ahead of the IMF's general meeting in September.
