Japanese Government debt to reach 204.2% of GDP

| January 20, 2011 | 0 Comments
”Japanese

Despite being one of the first major economies to emerge from recession - in the second quarter of 2009 - Japan faces many risks to its recovery.

Not only is it battling with deflation, it struggling with a strong yen, which continues to weaken demand for exports and threatens the economic recovery.

A short period of deflation (where prices fall rather than increase) could be a serious threat to the economy because it deters consumers and businesses from spending in expectation of falling prices.

Today, a news report has suggested that Government debt is to reach 204.2% of GDP.

This compares with 136.8% for Greece and 112.7% - according to estimates from the OECD.

Japanese debt is the highest of any industrialised nation.

Earlier this week, Japan’s newly-appointed fiscal policy minister warned that the Government must take immediate action and create a plan for fiscal reform to avoid deepening the economy’s significant debt.

Yoshito Sengoku, who was chief cabinet secretary until a reshuffle on 14 January told reporters on 6 January that Japan’s fiscal situation is “approaching the edge of a cliff.”

Tags: , , , , ,


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply


Visited 4365 times, 3 so far today