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Japan's debt hits record high

Japan's debt hits record high
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Japan’s outstanding government debt rose to a record high at the end of last year.

Data from the country’s finance ministry highlighted the worsening state of public finances in a country that has the world’s largest debt burden.

Public debt at the end of 2013 reached 1,017.9 trillion yen, that’s around 7.229 billion euros. It is roughly double the Japanese gross domestic product, making it far the worst ratio among industrialised nations.

It is the third consecutive quarter in which it has topped the 1,000 trillion yen mark.

But analysts are not predicting an imminent debt crisis on the back of the figures; yields on Japanese government bonds are low, with the Japanese government bond market still dominated by Japanese savers and institutions rather than investors from outside the country who would demand higher yields.