Fitch Ratings has affirmed Japan's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'A' with a stable outlook.
The ratings agency expects the Japanese economy to expand 0.8% in 2019, the same outcome as in 2018, despite an unexpectedly robust 2.1% growth in 1Q19 (seasonally adjusted, annualised). GDP growth, however, is expected to lose steam through the rest of the year and early 2020, courtesy of weakening exports and industrial production.
Key points (Source: Fitch Ratings)
Japan's ratings balance the strengths of an advanced and wealthy economy, with high governance standards and strong public institutions, against weak medium-term growth prospects and high public debt.
Japan has strong external finances, underpinned by a persistent current account surplus as well as large net external credit and international investment positions relative to peer.
Japan's high level of gross general government debt (GGGD), at over 230% of GDP, is the highest among Fitch-rated sovereigns, and poses a key rating constraint.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.