The new Prime Minister of Japan (the second largest economy in the world) said that the country could face a debt crisis similar to the Greek. Well-known financier George Soros says that the world economy has entered "the second phase of the crisis."
In his first address to parliament, Prime Minister of Japan, Naoto Kan said that the country can not afford to build the state debt at a time when its budget is in the load of an aging and shrinking population.
According to the International Monetary Fund, in 2009, Japan`s public debt was the most significant among all developed countries, accounting for 218.6% of its GDP. "Our financial system may suffer a collapse, like the Greek, if we do not deal with the growing public debt and the credibility of our interest will be lost" - the words quoted Kahn The Associated Press.
As part of measures to reduce public debt Kahn proposes to raise taxes. His goal is that Japan`s economy grew by more than 2% per year by 2020.
On the eve of a conference in Vienna, a well-known financier George Soros said that "the collapse of the financial system, familiar to us is absolutely real, but the crisis is far from complete. Moreover - the second act of this drama has already begun. "
Soros believes that the reduction of budget deficits by various countries of the world slows down an already shaky global economic recovery, reports Bloomberg.
In addition, experts fear causes and the rapid growth in housing prices in China, which continues unabated, despite the measures taken by the authorities ostuzheniyu local real estate market. Economists fear that if the real estate bubble of China collapses, it will have far-reaching negative consequences for the global economy.
World Bank experts have prepared a report "World Economic Outlook in 2010", in which contend that the active global economic recovery may be interrupted in case if there is at least one sovereign default in the European Union.