Japan has reached a debt of over one quadrillion yen (US$9.81 trillion), much larger than the debt of the UK, France and Germany combined. PBI’s sister company, WealthInsight, looks at new measures to reduce the debt and how this will affect Japan’s wealthy population.
With the highest rate of debt to GDP in the world, 227.2%, Japan’s new economic policies, including fiscal stimulus, aggressive monetary easing and structural reform, are trying to ease the burden. Despite the large debt, there has not been an adverse effect on Japanese millionaires. Overall wealth has risen by 32.5% between 2009 and 2013. This number is only expected to increase with forecasts predicting the wealth to increase by 21%, hitting US$3.7 trillion, by 2018.
Go deeper with GlobalData
Tom Carlisle, analyst at WealthInsight, said: "With the country’s assets increasing to 77.7% by 2018, this means that Japanese millionaires believe that the situation on government debt will not affect their finances in the long run. Japanese debt, however, could get out of control and with the government looking at increasing inflation to reduce the debt level, could influence millionaires to buy more stable currencies such as the dollar or the pound. This could cause investment in Japan to fall."
To read more on this issue, read WealthInsight’s white paper on the matter and Private Banker International’s recent country survey.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
