Japan debt at record 1,342 tril. yen, puts Takaichi fiscal policy in focus

TOKYO - Japan's total debt rose to a record 1,342.17 trillion yen ($8.6 trillion) at the end of 2025, Finance Ministry data showed Tuesday, as Prime Minister Sanae Takaichi's pledge to expand spending cast doubt over the outlook for the country's fiscal health.

The debt, up 24.54 trillion yen from a year earlier, is more than twice the size of its economy and faces upward pressure due to ballooning social security, national defense and debt-servicing costs, reflecting higher government bond yields in tandem with increases in long-term interest rates.