And Japan is now following
First Greece, then China, and now it is Japan that worries.
The International Monetary Fund, IMF is sensing out a warning regarding Japan’s debt in a completely new report. The IMF believes that Japan’s debt is unsustainable and that the risk of increasing as much as up to three times the country’s GDP (Gross Domestic Product) in 2030, is worrying.
In the annual audit, the IMF now expresses its concern about the debt Japan has incurred. If the Japanese government does not look over their finances and start to make budget cuts as soon as possible, the organization fears that the debt might become unsustainable.
IMF writes in their report that “Concerns about the long-term sustainability of finances risk leading to a greatly increased risk-fee and abruptly forcing further fiscal changes with negative impact on the financial system and the real economy”.
Prime Minister Shinzo Abe’s plan to strengthen the country’s finances, the IMF says, will only stabilize the debt provisionally around 250 percent of GDP. The risk is that, continued, under the same kind of political ruling will increase the debt again and land on the 290 percent of GDP, which concerns the IMF.
