Japan recorded a Government Budget deficit equal to 6.40 percent of the country's Gross Domestic Product in 2022. Government Budget in Japan averaged -3.08 percent of GDP from 1960 until 2022, reaching an all time high of 2.58 percent of GDP in 1961 and a record low of -8.80 percent of GDP in 2020. source: Ministry of Finance, Japan
What caused Japan's fiscal deficit from 2013 to 2022?
Japan's fiscal deficit from 2013 to 2022 continued to be significant, driven by longstanding economic stagnation and elevated ageing-related spending demands. The government's efforts to stimulate the economy through fiscal measures, including infrastructure spending and social welfare programs, contributed to the persistent deficit.
Does Japan have a debt problem?
Japan is often a misleading example for those who downplay the problems of debt. Tokyo has run budget deficits throughout the past three decades, creating one of the world’s highest public debt to GDP ratios, without any adverse effect on inflation and interest rates.
