Japan’s economy is heading towards financial meltdown, say analysts, who see that public debt in Japan is greater than that of any other industrialised nation.

Public debt in Japan is heading towards 200 per cent of GDP within the next year. Hideo Kumano, chief economist at Dai-ichi Life Research Institute says that Japan “would go bankrupt by 2011″, if the government doesn’t issue more government bonds.

Press TV reports that Japan’s public debt will soar to 950 trillion Yen ($10.2 trillion) next year.

The Japanese economy collapsed 5.2 per cent in 2009 as a result of debt, deflation and a decline in domestic demand.

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