Japan's Debt-to-GDP Ratio Expected to Decline, Economist Predicts

Japan's government debt balance saw a year-on-year decrease of 3.8% as of the end of December last year, according to data released by the Bank of Japan on Wednesday. According to Jin10, Capital Economics economist Marcel Thieliant anticipates a similar decline in the official national accounts data, suggesting that Japan's debt-to-GDP ratio could fall from 222% in 2024 to 204%. If fiscal deficits remain low and the economy continues to grow, the debt-to-GDP ratio is expected to decrease to around 190% in the coming years, significantly lower than the International Monetary Fund's forecast of 220%.