OREANDA-NEWS. Relying on faster growth to address public indebtedness is a riskier path for Japan's sovereign credit profile than further progress on structural fiscal consolidation, Fitch Ratings says in slides that were presented at its recent media presentation in Tokyo on 22 July.

Achieving a primary budget deficit that would stabilise public debt ratios is not out of reach, even under conservative assumptions for growth and inflation. But Japan's high debt level leaves sovereign solvency vulnerable to economic or financial shocks. Structural fiscal consolidation would build buffers against volatility and support the credit profile.

The presentation "Can Japan Grow Its Way Out Of Public Debt?" is available from www.fitchratings.com or by clicking on the link in this media release.