The Japanese economy, which has been suffering from a huge national debt for a long time, could see a sovereign downgrade this year, many experts say.
Amid such fears, they warn of the prospects of the yen and Japanese Treasury bonds plummeting. The yen and the bonds have been considered safe assets since the 2008 global financial crisis.
To restore fiscal soundness, Tokyo is mulling measures such as tax reform, but has failed to win over global investors due to poor political leadership. The collapse of the Japanese economy will have a negative impact on the Korean economy through an outflow of Japanese funds, according to experts. (donga.com)
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