Long-term Economic Forecast of the Japanese Economy (2001-2025)
- If Japan continues to postpone the resolution of the problems its the economy faces today, the outstanding public bonds will balloon to 3.5 times the size of GDP and the country will proceed along the path of collapse to become a net debtor country.
- If public investment is reduced and funds are redirected to research and development, then
economic growth will average about 0.6% per year until the year 2025. The current account
balance may continue to mark surpluses, but outstanding public debt will still reach crisis levels.
- If the economy can respond positively to the situation, encouraging technological advance from the private sector, the enhanced participation of women in the workplace, and fiscal rebuilding by tax increases, then growth will be above 1% and the public debt problem can be resolved