IMF: Japanese debt to increase threefold
The International Monetary Fund has warned Japan of its debt increasing threefold by 2030.
In its annual assessment, the IMF experts noted that the third biggest economy of the world may face stagflation and turmoil in financial markets. They also called on the government to cut spending and limit extra budgets.
The Japanese public debt may reach 250% of GDP in the nearest five years. The risks may occur due to new structural reforms carried out by Shinzo Abe.
Such Japanese policies may trigger drastic stagnation and inflation as a result of weak domestic demand.
According to Fitch, Japan's increasing reliance on economic growth to cut its debt burden exposes the nation to greater risks. In April, the agency cut its rating on the country to the same level as Malta.
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