If Japan faces a significant economic shock in the future, the pace of deterioration in its debt levels could exceed that seen during the COVID-19 pandemic, senior International Monetary Fund official Vitor Gaspar warned in a recent interview.
Gaspar, who heads the IMF's Fiscal Affairs Department, went on to emphasize the urgent need for fiscal consolidation in light of the debt risk.
The IMF predicts that Japan's debt will exceed 250% of its gross domestic product (GDP) this year before gradually decreasing to 245% by the end of the decade.
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