Japan’s debt reaches 1,000,000,000,000,000 yen

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One-Quadrillion-YenOn August 9, Japan’s government announced a new world record: The country’s national debt has reached 1,008,600,000,000,000 yen, or more than 1 quadrillion yen, which equals $10.46 trillion and has introduced a new term to global finance – the quadrillion, a figure with 15 zeros.

Japan’s debt now is roughly equal to three times the GDP of ASEAN’s ten member nations and 200 per cent of its own GDP. It is also larger than the economies of Germany, France and the UK combined. Some 830 trillion yen are outstanding government bonds at meagre average yields of ten-year treasury bonds of 0.76 per cent.

Japan’s prime minister Shinzo Abe tries to counter ballooning debt with a new consumption tax that was raised to 8 per cent in April 2013 from the 5 per cent, to be followed by an increase to 10 per cent in October 2015.

However, to put it into relation, it has to be said that the US public debt in yen terms is 1.5 quadrillion. But this is still much less severe a portion of national GDP and tax revenue spending than is that of Japan.

By the end of 2013, Japan’s debt is expected to exceed 247 per cent of GDP, and the Japanese government already forfeits nearly 50 per cent of its annual tax revenue to debt services. When private and corporate debt is included in the equation, Japanese debt amounts to almost 500 per cent of GDP.

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Reading Time: 1 minute

On August 9, Japan’s government announced a new world record: The country’s national debt has reached 1,008,600,000,000,000 yen, or more than 1 quadrillion yen, which equals $10.46 trillion and has introduced a new term to global finance – the quadrillion, a figure with 15 zeros.

Reading Time: 1 minute

One-Quadrillion-YenOn August 9, Japan’s government announced a new world record: The country’s national debt has reached 1,008,600,000,000,000 yen, or more than 1 quadrillion yen, which equals $10.46 trillion and has introduced a new term to global finance – the quadrillion, a figure with 15 zeros.

Japan’s debt now is roughly equal to three times the GDP of ASEAN’s ten member nations and 200 per cent of its own GDP. It is also larger than the economies of Germany, France and the UK combined. Some 830 trillion yen are outstanding government bonds at meagre average yields of ten-year treasury bonds of 0.76 per cent.

Japan’s prime minister Shinzo Abe tries to counter ballooning debt with a new consumption tax that was raised to 8 per cent in April 2013 from the 5 per cent, to be followed by an increase to 10 per cent in October 2015.

However, to put it into relation, it has to be said that the US public debt in yen terms is 1.5 quadrillion. But this is still much less severe a portion of national GDP and tax revenue spending than is that of Japan.

By the end of 2013, Japan’s debt is expected to exceed 247 per cent of GDP, and the Japanese government already forfeits nearly 50 per cent of its annual tax revenue to debt services. When private and corporate debt is included in the equation, Japanese debt amounts to almost 500 per cent of GDP.

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