Weeks after downgrading US credit rating, Standard and Poors took a step further to downgrade Japan for having the highest debt per GDP ration in the world. Standard and Poors´ decision on Japan seems questionable.
Recently, the US government decided to investigate the credit agency therefore, the downgrade of Japan may be an attempt by the agency to show the world that it is neutral in its dealings. Nonetheless, the downgrade of Japan may be unnecessary at this time; the nation has just experienced one of the worst earthquakes and Tsunami in history. Japan is still trying to dig itself out of the economic downfall caused by the Tsunami, the downgrade by Standard and Poors will do nothing but cause more economic woes for the nation.
However, this is not to say that Japan enjoyed a robust economy before the Tsunami. With the emergence of Yoshihito Noda as the sixth prime minister in five years, one may ask whether Japan´s economy is experiencing a downfall.
Comments welcome on Adeyemi Oshunrinade blog.
Categories: Humanitarian, Japan Economy and future
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