Japan economy at risk of ‘bankruptcy’
Japanese yen notes are piled atop US dollar bills in a Tokyo market.
Analysts have warned that Japan may go bankrupt next year with a public debt figure larger than that of any other industrialized nation.
Dai-ichi Life Research Institute cautions about surging public dept of Japan, estimating that it will hit 950 trillion yen next year. That is 200 percent of the country’s GDP.
Experts say that Japan cannot avoid bankruptcy unless it issues more government bonds.
Japan has the world’s second-largest economy by nominal GDP and the third largest in purchasing power parity.
Deflation, high public debt and weak domestic demand have had a drastic impact on Tokyo’s finances. The Japanese economy shrank 5.2 percent last year.