In August 2011 , Moody 's rating cuts Japan 's long-term sovereign debt rating by one notch to Aa3 from Aa2 in line with the size of the country 's deficit and borrowing level . The large budget deficits and government debt since the 2008-09 global recession and followed by earthquake and tsunami in March 2011 contributed to the ratings downgrade . In 2012 the Organisation for Economic Co-operation and Development ( OECD ) Yearbook editorial stated that Japan 's " debt rose above 200 % of GDP partly as a consequence of the tragic earthquake and the related reconstruction efforts . " Due to the ballooning debt , former Prime Minister Naoto Kan called the situation " urgent . " Indeed , by 2014 , Japan had the world 's highest debt per GDP
earthquake and tsunami in March 2011
2011 Tōhoku earthquake and tsunami
National debt of Japan