Fund manager's comment/Simon Donne
After 10 years of economic and political floundering, it is tempting to believe Japan is finally approaching a make-or-break situation. While the economy has fluctuated between recession and half-hearted attempts at self-sustained growth, Japan's structural problems have remained unsolved. Annual budget deficits throughout the 1990s have led to the gross public debt ballooning to 130% of GDP, banks' capital reserves have been eroded by bad debt write-offs, demographics have become less favourable and the Bank of Japan (BoJ) has already reduced interest rates to zero. Although Japan be...
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