Japan's National Debt Hits Record ¥1,343 Trillion for 10th Consecutive Year
Primary region Asia
Tags Economy · Policy
Regions Asia
Japan's total government debt reached ¥1,343.84 trillion ($8.58 trillion) at the end of fiscal 2025, marking a record high for the 10th straight year. The debt grew by ¥20.13 trillion from the previous fiscal year, driven by rising social security costs from the aging population, increased defense spending, and inflation-related policy costs. Per capita debt stands at approximately ¥10.94 million. Government spending continues to exceed tax revenues despite rising tax receipts, leaving Japan reliant on debt issuance.
Strategic interpretation
Japan's debt trajectory is unsustainable in the long term but remains serviceable due to domestic bond holdings and the Bank of Japan's accommodative policy. The strategic concern is that rising debt constrains Japan's ability to increase defense spending at a time when regional security demands are growing. The debt also limits fiscal flexibility if the US pressures Japan to shoulder more alliance costs.