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February 28, 2021
Business International News

Huge Debt Poses Threat on Japan’s Economy

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by Marie Kauna – EMTV Online, Port Moresby

Debt is one unhealthy business disease that drags down the successful progress of a country and its economy if not monitored and managed well.

Japan, the world’s third largest economy, is now seeing a major problem in its huge debt rates.

According to reports from the International Monetary Fund (IMF), assessmen’s have indicated that the country’s economy will be very much affected in the coming years if appropriate and immediate action is not taken.

The IMF reports that the country’s debt will triple its economies size by the year 2030, and there is an urgent call for appropriate measures to be taken to curb the issue before it reaches these estimated limits.

A warning was made by IMF for the country not to rely too much on its yen, but to execute more reliable reforms that will work out to solve its huge debt problem. The Abenomics economic plan by Prime Minster Shinzo Abe has seen some changes however, IMF suggests there is more structural reform needed. 

More focus is now centred on reforms, to make soluble and lasting plans that can be executed to lift labour supply, agriculture and service sectors to cut out the country’s huge debt rate.

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