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What is Japanese Government Bonds mean?
As of 2021, the Japanese public debt is estimated to be approximately US$13.11 trillionUS Dollars (1.4 quadrillion yen), or 266% of GDP, and is the highest of any developed nation. 45% of this debt is held by the Bank of Japan.
Japan's asset price bubble collapse in 1991 led to a prolonged period of economic stagnation described as the "lost decade", with GDP falling significantly in real terms through the 1990s. In response, the Bank of Japan set out in the early 2000s to encourage economic growth through a non-traditional policy of quantitative easing to inject liquidity into the market. By 2013, the Japanese public debt exceeded one quadrillion yen (US$10.46 trillion), which was about twice the country's annual gross domestic product at the time and already the largest debt ratio of any nation.
Rising debt levels were a response to the Global Financial Crisis in 2007-08, the huge costs incurred in the disaster of the Tōhoku Earthquake in 2011, and the COVID-19 pandemic beginning in late 2019. In August 2011, Moody's rating cut Japan's long-term sovereign debt rating by one notch to Aa3 from Aa2 in line with the size of the country's deficit and borrowing level. The large budget deficits and government debt since the 2008-09 global recession and the Tohoku earthquake and tsunami in March 2011 contributed to the ratings downgrade. In 2012 the Organisation for Economic Co-operation and Development (OECD) Yearbook editorial stated that Japan's "debt rose above 200% of GDP partly as a consequence of the tragic earthquake and the related reconstruction efforts." Former Prime Minister Naoto Kan called the situation "urgent" due to the ballooning debt.
referencePosted on 06 Nov 2024, this text provides information on Miscellaneous in Stock Exchange related to Stock Exchange. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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