Japan PM Warns Country’s Financial Situation Worse Than Greece

Tokyo: Japan’s Prime Minister has raised concerns about the country’s financial health, saying it is in a worse condition than Greece during its debt crisis. Speaking in parliament, Prime Minister Fumio Kishida warned that Japan’s growing debt could lead to serious economic troubles if not addressed soon.

Japan has the highest public debt among developed nations, with debt more than double the size of its economy. The government has been borrowing heavily for years to fund social programs and economic stimulus packages, especially after major disasters and the COVID-19 pandemic.

The Prime Minister’s comments shocked many, as Greece’s financial crisis in the 2010s led to international bailouts, high unemployment, and deep spending cuts. Comparing Japan to Greece shows just how serious the situation has become.

Why Japan facing the financial Crisis?

Japan’s financial problems didn’t happen overnight. After the economic boom of the 1980s, the country faced a long period of low growth and deflation, known as the “Lost Decade.” To fight this, the government started borrowing to support the economy.

In 2011, the Fukushima nuclear disaster and earthquake forced Japan to spend heavily on recovery. Then came the COVID-19 pandemic, which led to even more government spending to support people and businesses.

At the same time, Japan’s aging population means fewer workers and more people needing pensions and healthcare. Tax income is not enough to cover these costs, so the country continues to borrow.

The Prime Minister is now calling for urgent reforms to fix the financial system, cut unnecessary spending, and boost the economy.