February 1, 2023

How the world’s most indebted country still has international credit

  • Cristina J. Orgazcjorgaz
  • BBC News World

credit, Getty Images

Illustrative image,

The confidence of the international market allows Japan to offer its public debt securities at low interest rates

At the end of September 2022, Japan was grappling with a number that would send chills to any other country in the world – but would continue to rise well into the future.

Japan’s public debt amounted to US$9.2 billion (about R$47.7 billion). The value corresponds to 266% of the country’s GDP – the highest among the world’s major economies.

In comparison, the debt of the United States, in the same period, amounted to 31 billion US dollars (about R$ 160.9 billion).

But given its size as the world’s largest power, this value is equivalent to 98% of US GDP.