Recently the Yomiuri News reported the following:
On the 17th, the International Monetary Fund (IMF) made public its world financial projection, and evaluated that "In many advanced countries, fiscal reconstruction is advancing in an appropriate pace".
However, it pointed out that Japan as a major power had the worst fiscal deficit in 2011 years and also 2012 and that "A concrete mid-term fiscal reconstruction plan is indispensable".
It also compared each country's purchasing power parity based on the adjusted price level. For Japan in expectation of a decrease tax revenue due to the East Japan great earthquake and the increase in public spending by supplementary budget, when compared to last (April), it was expected that the gross domestic product (GDP) in the year 11 would see a deterioration of 0.5 point to become 10.5%, and 0.7 point deterioration to become 9.1% in year 12.
In the US, for year 2011, due to increase in tax revenue and cuts in expenditure as a result of the economic recovery, it would improve by 0.9 point to become 9.9%; for the year 2012 similar improvement in deterioration by 0.3 point to become 7.8%, with the high levels continuing though. Therefore there was a need to immediately bring a mid-term fiscal reconstruction plan together, it was pointed out.
According to the IMF, it seems that the financial situation both in Japan and the US needs further improvement.