Fitch Ratings has downgraded Japan's sovereign debt rating to A+ and has placed the country on a negative outlook owing to its rising public debt pile.
Japanese government spending helped fuel a gradual recovery fron last year's earthquake and tsunami, with growth up 1% for Q1 compared to the previous quarter.
Japan's central bank has further eased monetary policy by expanding its asset purchasing programme from 65trn to 70trn yen and buying riskier assets including ETFs.
The Bank of Japan has announced further asset-purchases as part of its latest bid to end 20 years of deflationary pressures - but how significant is its recent change in tack?
Japan has agreed to loan the International Monetary Fund (IMF) $60bn after repeated calls from the organisation for additional funds to help it tackle the eurozone crisis.