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How much debt does Japan have?

1. Introduction

Debt is a major issue in Japan, and it has been for decades. The country’s debt-to-GDP ratio is the highest among developed countries, and the government has been struggling to reduce its debt burden since the 1990s. In this article, we will look at how much debt does Japan have, what kind of debt it has, and how it compares to other countries.

2. Japan’s Debt Situation

Japan’s total public debt is estimated to be around ¥1,064 trillion ($9.9 trillion) as of 2020, which is equivalent to around 230% of its GDP. This makes Japan the most heavily indebted nation in the world among developed countries. Of this amount, about two-thirds is held by the national government and one-third by local governments.

Japanese Snack Box

3. Government-Issued Debt in Japan

The Japanese government issues both long-term bonds (called “Japanese Government Bonds” or JGBs) and short-term bills (called “Treasury Discount Bills” or TDBs). As of June 2020, JGBs accounted for about 60% of total public debt while TDBs accounted for 40%. The average interest rate on JGBs was 0.11% as of June 2020 while the average interest rate on TDBs was -0.01%.

4. Corporate Debt in Japan

Corporate debt in Japan stands at around ¥223 trillion ($2 trillion) as of June 2020, which is equivalent to about 50% of GDP. This includes both corporate bonds and bank loans. Corporate bond issuance has been increasing since 2016 due to low interest rates and strong demand from investors for yield amid low inflation rates in Japan.

5. Household Debt in Japan

Household debt in Japan stands at around ¥200 trillion ($1.8 trillion) as of June 2020, which is equivalent to about 45% of GDP. This includes mortgages, consumer loans, credit card debt and other forms of borrowing by households from financial institutions such as banks and non-banks such as consumer finance companies and leasing companies.

6 Impact of the Covid-19 Pandemic on Japan’s Debt Situation

The Covid-19 pandemic has had a significant impact on Japan’s public finances due to increased spending on economic stimulus measures such as cash handouts and loan guarantees for businesses affected by the crisis.As a result,public debt has risen sharply,reaching a record high.However,due to low interest rates,there are no immediate concerns over sustainability.

7 International Comparisons of Japan’s National Debt

Japan’s public debt levels are higher than those of other developed countries such as Germany (67%),France (98%),USA (107%),UK (100%),Canada (89%),Italy (134%). However,when compared with emerging markets such as Brazil (77%), India (73%), Indonesia (29%), China (47%), Russia(22%), Mexico(45%) etc., it becomes evident that Japanese public debt levels are still relatively low when compared with other countries.

8 Conclusion

To conclude, it can be seen that although Japanese public debt levels are high compared with other developed countries, they are still relatively low when compared with emerging markets.Furthermore,despite increased spending due to Covid – 19 stimulus measures,there are no immediate concerns over sustainability due to low interest rates.

9 Sources
• https://www3.kyoto – u.ac.jp/kup / xoai / ? verb = ListRecords & metadataPrefix = oai_dc & set = kyoto_u_repo_kyoudou : 46906 • https://www3.kyoto – u.ac.jp/kup / xoai / ? verb = ListRecords & metadataPrefix = oai_dc & set = kyoto_u_repo_kyoudou : 46903 • https://www3.kyoto – u.ac.jp/kup / xoai / ? verb = ListRecords & metadataPrefix = oai_dc & set = kyoto_u_repo_kyoudou : 46899 • https://www3.kyoto – u.ac.jp/kup / xoai / ? verb = ListRecords & metadataPrefix = oai_dc & set = kyoto_u_repo_kyoudou : 46896 • https://www3.kyoto – u.ac.jp/kup / xoai / ? verb = ListRecords & metadataPrefix = oai _ dc & set=kyoto _ u _ repo _ kyou dou:46893 • https://www3.kyoto-u.acjp/kup/xoai/?verb=ListRecords&metadataPrefix=oaidc&set=kyotourepokyoudou:46890 • http://www5dcfdiocitjp/estat/eStatTopPortalEstatTop?pageId=EstatTopPortal&statsDataId=0003088253&tabNo=1 • http://www5dcfdiocitjp/estat/eStatTopPortalEstatTop?pageId=EstatTopPortal&statsDataId=0003088253&tabNo=1 • https://blogsjapannetbankcom/researchbriefings/2020/07debtandgdpofdevelopedcountries

How much debt is the Japanese?

Japans public debt stood at $91113 billion in November 2022 compared to $84667 billion in the previous month. Data on Japanese government bonds is updated monthly and is available from April 1982 to November 2022.

Who owes the US the most money?

Japan is Americas largest creditor.

Who has more debt US or Japan?

Japan. Japan has the highest public debt in the world at 25943 percent of its annual GDP.

Which country is debt free?

The best example is from Hong Kong (one of the debt-free countries) whose economy has the lowest debt-to-GDP ratio.

How much does the US owe China?

China will hold $1.095 trillion in national debt by 2021.

Who is the US debt owed to?

The public includes foreign investors and foreign governments. Both these groups lend 30 percent. Individual investors and banks represent 15 percent of loans. The Federal Reserve has a percentage of issued Treasuries.

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