Financial analysts warn Japan's economy at risk of bankruptcy

Tokyo - Financial experts are cautioning Japanese officials that their economy may go bankrupt as early as next year because of their high public debt figure.

As global financial markets watch Greece very closely, economic analysts are warning that Japan’s economy may go bankrupt because of its astronomical public debt figure, according to AFP. Dai-ichi Life Research Institute sounded the alarm this week when they said a Japanese bankruptcy could occur as early as 2011 when the public debt is expected to hit 20 per cent of the gross domestic product. It is estimated, reports Press TV, that the public debt of Japan will surge to 950 trillion Yen ($10.2 trillion) next year and experts are cautioning the government that the only way they can avoid bankruptcy is if they issue more government bonds. “Japan’s revenue is roughly 37 trillion yen and debt is 44 trillion yen in fiscal 2010. Without issuing more government bonds, Japan would go bankrupt by 2011,” said Hideo Kumano, chief economist at Dai-ichi Life Research Institute, reports the Manila Times. The Japanese economy shrank by 5.2 per cent in 2009 due to debt, deflation and a decline in domestic demand. Digital Journal reported in December that Japan released its record 92.9 trillion Yen ($1 trillion) budget as they increased spending for child support and attempted to slash spending on public projects.