Momentum in Japan's economy may soon fizzle out, IMF warns

Tokyo

THE International Monetary Fund (IMF) warned on Monday that the sweet spot that the Japanese economy is now in - boosted chiefly by external demand and fiscal stimulus - may not last long unless bolder steps are taken to strengthen longer-term growth and inflation.

The recent gains are vulnerable, key policy objectives have yet to be achieved, and domestic investment and consumption are too weak to sustain positive momentum on their own, said the Washington-based institution.