After staggering along for the past two decades with sluggish growth and deflation
- Japan has seen a budgeoning national debt upto 195% of GDP and forecast to keep rising. Japan debt
- Japanese Debt keeps rising
Debt interest payments are becoming an increasing burden(history of debt)
- GDP fell at its fastest rate for 35 years, a fall of 3.5% in the last quarter or an annual decline of 12% (one definition of depression is negative growth of over 10%)
- The government have tried frequent monetary and fiscal stimulus but they don't seem to have worked. Interest rates are 0.1% are can't be cut any further. The deficit is so high, that fiscal stimulus border on the reckless.
- It is an unprecedented level of government debt with no prospect of an imminent fall.
- With an ageing population, demographic changes will worsen debt in future.
- Japan's economy has relied to a large extent on exports and global demand. There is nothing they can do about the collapse in global demand. exports fell a record 13% in the fourth quarter of 2008. They are particularly affected by fall in demand for cars.