Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Spotlight Japan: Record Military Spending, Damn The Debt

Published 12/22/2016, 02:48 AM
Updated 07/09/2023, 06:31 AM

Despite having the G7’s largest debt to GDP ratio, Japan Boots Military Spending to Record levels amid Chinese tensions.

Japan’s Prime Minister Shinzo Abe has signed off a record defense budget in the face of territorial disputes with China and North Korea’s nuclear and missile threats.

Spending on fighter jets and submarines are partly behind the increase to 5.13 trillion yen (£35.2bn, $43.6bn).

A separate coastguard budget will also be raised sharply.

The plans are part of a 97.5tn yen budget for the financial year starting 1 April 2017.

Japan’s parliament must still approve the budget, but if approved it would be the fifth consecutive rise in the defense budget.

A rising social security bill to fund the cost of services for an ageing population is already putting increasing pressure on the country’s economy, and the extra defense and coastguard spending will add to Japan’s debt.

Japan Debt-to-GDP

Japan Debt To GDP

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.