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Explore Japan's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks

Japan’s External Debt to GDP Ratio (2010 - 2020, %)

Japan’s external debt in relation to its GDP was 92.7% in 2020
External debt as a % of GDP of Japan increased by 12.3% from the previous year in 2020
Between 2010 to 2020, the external debt as a % of GDP in Japan was highest in 2020 with 92.7% and was lowest in 2010 with 41.7%

Japan External Debt as a % of GDP Highlights in 2020

Japan’s external debt as a % of GDP hit 92.6% in 2020, an increase of 12.3% over the previous year. Between 2010 to 2020, Japan’s external debt as a % of GDP increased by 122.2%.

According to the International Monetary Fund, general government gross debt increased from 254.1% of GDP in 2020 to 256.9% of GDP in 2021, due to the impact of COVID-19. Further, the general government gross debt is forecast to remain at an elevated rate of 252.3% of GDP in 2022. The increasing debt would also have an impact on the general government net borrowing, and it might affect the development prospect of the country, due to the growing burden of debt repayment.

Outlook on Global Economy

Real GDP is measured using inflation-adjusted base year prices. Real GDP changes are a measure of economic growth and show whether there has been an increase or decrease in the volume of economic activity.

According to real GDP, the world's top five economies are the United States, China, Japan, Germany, and India. After the US, China had the largest real GDP in 2021 with a value of $12.7 trillion in 2021. With a $6 trillion real GDP during the same period, Japan came in third place globally. Germany and India are the other two largest leading economies, with real GDPs of $3.8 trillion and $2.9 trillion, respectively.

Factors Affecting the Global Economy

A rise in COVID-19 cases:

As a result of Omicron, a new variant of COVID-19, more cases have been reported worldwide, resulting in the disruption of supply chain management. However, the global vaccination drive has reduced the fatality rate from the coronavirus.

Rising Inflation and Interest Rates:

As a result of rising inflation rates in both developing and advanced economies, central banks have been forced to tighten monetary policy and raise interest rates to keep prices from rising. However, a steady increase in interest rates could cause financial distress in some economies.

Explore Japan's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Explore Japan's latest macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Visit Report Store