Tag: Japan

Following a year of sustained growth, Japan’s economy is navigating a transitional phase. While economists predict a strengthening economy, Japan is faced with potential interest rate hikes, a shifting political landscape under newly elected Prime Minister Sanae Takaichi and slight pressure from U.S. tariffs.  

Japan’s economy has shown strength and growth so far this year, but the unpredictability of the brewing trade war and the broad-sweeping implications of tariffs from a major trade ally could slow the nation’s growth.

When Prime Minister Fumio Kishida took office in October 2021, he promised to rebuild Japan’s economy through a strategy he dubbed, “New Capitalism.” Kishida would quickly change course on his economic plan, which included redistribution at its core in an effort to reduce social inequities. As he stepped down three years later, the changes he brought to the economy seem to pale in comparison to this outsized promise.