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Japan has had a very successful year so far. much bigger than what was originally projected for the country. In addition to this, . It all presents a positive outlook for Japan as it climbs steadily but surely out of its previous economic slump. According to several central financial officers, this also presents good news for the . Despite this good fortune, there are still many problems that the country must overcome, and it is not certain that the Olympics will be the economic boon to Japan that it appears to be.
Japan's debt, calculated to be twice its GDP, still remains a sizable problem. The cost of hosting the Games promises no help, coming to almost $6 billion. The total investment from the public also threatens to push the government into deficit spending. Lots of pressure rests on the prime minister, Shinzo Abe, and his administration to solve these issues, as they have promised fiscal surpluses for the country by 2020. has been met with high skepticism, and it is unclear as to how such a measure would impact the still-recovering economy. The decision on this measure is expected to be made in October.
There is also questioning as to how much of an effect the Games will truly have on Japan's economy. The impact of the Olympics will cover the entire country and be divided into several different segments. , if even. However, this impact may be of great benefit to Japan's biggest industries, especially in the process of preparing for the games. Infrastructure, , could greatly benefit from spending for the Games. the country's housing, hotel, gambling, and industries also have a chance of growing from increased government investment.
As a result of this, it seems the most Japan has to gain from the is a miniscule increase in its GDP while specific industries have potential for further growth. Meanwhile the Japanese government, despite the great economic year so far, will have to figure out how to solve its current issues in time for the 2020 Olympic Games.
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