🇯🇵 Japan

Public Sector Debt · 2026

Total Debt

259.7%

of GDP

Global Rank

of 192

Interest Burden

of govt revenue

S&P Rating

A+

Credit rating

SOE Debt

+32.9%

3 categories

5yr Change

-29pp

improving

Interest Cost

1.5%

of GDP (govt only)

Where the Debt Sits

Central Government

Central Government: 198.5%Subnational: 28.3%Dev Banks: 21.0%Infrastructure: 7.1%Public Corps: 4.8%

Who Holds This Debt

Holder Breakdown

Domestic 87%

Domestic: 87%Foreign: 14%

Currency Denomination

Local 100%

Local currency: 100%Foreign currency: 0%

Full Debt Breakdown

Central Government198.5% of GDP

General Bonds (JGBs, long-term)IMF WEO — General Government DebtConstruction + deficit-financing bonds; 10/20/30/40-yr

131.0%

Government BorrowingsIMF WEO — General Government DebtNon-marketable loans from FILP special account.

29.8%

Treasury Discount BillsIMF WEO — General Government DebtShort-term bills. Heavily held by foreign investors.

23.8%

FILP Bonds (Fiscal Investment & Loan)IMF WEO — General Government DebtFund govt lending programs. Repaid from loan collections, not taxes.

13.9%

Subnational / Regional28.3% of GDP

SubnationalIMF WEO — General Government Debt

28.3%

Infrastructure SOEs7.1% of GDP

Expressway companies (NEXCO)NEXCO Annual ReportsThree NEXCO companies inherited ~¥40T debt from former Japan Highway Public Corp. Still 100% government-owned.

7.1%

Public Corporations4.8% of GDP

Japan Post Holdings (banking & insurance)Japan Post Holdings Annual ReportGovernment holds 60%+. Japan Post Bank holds ~¥220T in assets, Post Insurance ~¥60T.

4.8%

Development Banks21.0% of GDP

Fiscal Investment and Loan Program (FILP) agenciesMOF Debt Management Report 2024→Government financial agencies: Japan Finance Corp, Japan Housing Finance Agency, DBJ, etc. FILP bonds outstanding ~¥140T.

21.0%

Total Corporate Debt111.7% of GDP

Nonfinancial corporate debt (total)BIS Credit Statistics Q3 2025Total NFC credit. SOE portion small.

111.7%

Household Debt61.1% of GDP

Household debtBIS Credit Statistics Q3 2025Low by developed country standards. Declining demographics reduce new borrowing.

61.1%

Unfunded Pension Liabilities100.0% of GDP

Public pension unfunded gap (est.)NBER, IMF pension reform papersExcess pension liabilities ~500 trillion yen. GPIF holds ~$1.7T in assets (~25% of GDP) but obligations vastly exceed this. Annual pension spending ~10% of GDP with rapidly aging population.

100.0%

All Layers Total532.5%