2010-08-11 15:33:02 - Japan Defence and Security Report Q3 2010 - a new market research report on companiesandmarkets.com

Japan has one of the largest defence budgets in the world, surpassing even China’s in the last few years. Despite the government’s focus on reducing debt, which will reduce therefore the speed of current and future defence projects, it is still an area the country is clearly keen to focus effort on. Much of the current budget is being spent deploying a fully-layered missile defence system, costing up to JPY1tm. In December 2009, a request for JPY94.4bn for the defence budget starting April 2010 was rejected. This has delayed the deployment of new Patriot Advanced Capability-3 interceptors (PAC-3) until after April 2011.

Japan’s economy looks set for a long and slow period of recovery, since emerging from recession in Q209. There

 

 

is the potential for it to be unsettled. The government established a JPY7.2trn (US$81bn) stimulus package in December 2009, aimed at preventing the economy from shrinking again. March 2010 saw the Bank of Japan look at further ways to shore up the country’s economic recovery as this must now be Hatoyama´s most important task. The national public debt burden is likely to reach 200% of GDP in 2010 and continue rising thereafter – which is the highest, proportionately to GDP, among mainstream economies.

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