September 21, 2020

Japan once again pulverized its record of public debt in the 2019 financial year



Japan recorded in its fiscal year 2019 for the fourth consecutive year a record volume of public debt, 1,114.54 trillion yen (9.7 trillion euros / 10.5 trillion dollars), highlighting the poor fiscal health of the Asian country .

The figure is 11% higher than the previous fiscal year due to the increase in social security costs, in line with demographic aging, according to data published this Friday by the Ministry of Finance on the occasion of the recent closing of the fiscal year. Japan 2019, concluded on March 31.

The ultra-flexible monetary policy put forth by the Bank of Japan (BoJ), which in April decided to remove its limit on purchases of state bonds to cushion the economic impact of the coronavirus pandemic, has made it easier for the Japanese government to go into debt.

But it has also distanced the third world economy from fiscal recovery and maintains it as the nation with the highest public debt in relation to gross domestic product (GDP), more than 200%.

Japan’s total debt consists of 987.59 trillion yen (8.6 trillion euros / 9.3 trillion dollars) in government bonds, 52.53 trillion yen (455 billion euros / 500 billion dollars) in loans and 74.42 trillion yen (645,000 million euros / 700,000 million dollars) in financing bonds.

.



Source link