Japan PM: Nation’s Fiscal State ‘Quite Severe’

5 Mar

From Reuters:

Japanese Prime Minister Yukio Hatoyama said on Thursday there is no doubt that the nation’s fiscal state is quite severe.

“There is no doubt that the current situation is quite severe,” Hatoyama said in a parliamentary committee meeting.

Japan is Australia’s second largest trading partner.  In the December 2009 quarter we sold $38.2bn in exports to Japan. China is our largest trading partner – we sold $42.2bn in exports to China in the same quarter.

A further deterioration in Japan’s ‘quite severe’ financial situation, and/or the predicted bursting of the China real estate bubble, would have disastrous impacts on the Australian economy.

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