Fitch Ratings revised its outlook Friday on Japan's sovereign debt to negative from stable, citing rising government indebtedness, lack of policy direction in addressing its ageing population problem, and as yet unknown costs related to reconstruction efforts following the devastating tsunami and earthquake in March.
Fitch also said Japan's debt to GDP ratio is projected to rise 56 percentage points from the end of 2007 to the end of 2012, lagging behind only the banking-crisis-stricken economies of Ireland and Iceland. It said it cut its estimate of Japan economic growth rate this year by 0.5% owing to ongoing electrical power shortages, and added there was a risk of permanent loss of output.
Fitch also said Japan's debt to GDP ratio is projected to rise 56 percentage points from the end of 2007 to the end of 2012, lagging behind only the banking-crisis-stricken economies of Ireland and Iceland. It said it cut its estimate of Japan economic growth rate this year by 0.5% owing to ongoing electrical power shortages, and added there was a risk of permanent loss of output.
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