Japan’s credit rating lowered
Fitch Ratings has lowered Japan’s credit rating as the country continues to wrestle with staggering debt.
Fitch said the government did not include sufficient measures in its budget to replace a sales tax hike it put off in the current fiscal year, which ends next March.
Japan’s debt is the largest among developed nations and more than twice the size of its economy. The country eventually has to boost taxes to cover rising costs for healthcare and elder care as the average age in the nation rises.
But a sales tax increase last spring hurt consumer and business spending as the Japanese economy slipped into a recession. That led Prime Minister Shinzo Abe to put off a second hike.