Recently two seemingly paradoxical headlines about the Japanese economy caught people’s attention. First, in 2023 Japan’s GDP was surpassed by that of Germany. Japan thus dropped to the world’s fourth-largest economy, 13 years after its long hold on the number two position was overtaken by China in 2010. And yet the Japanese stock market has … Read more
Global investors are convinced 2024 will be the year the Bank of Japan (BOJ) finally “normalizes” policy and hikes interest rates above zero. Making the wrong bet could cost the nation dearly. Negative interest rates have been a hallmark of Japanese monetary policy since 2016, with the BOJ maintaining ultra-easy policy to conquer deflation. Yet … Read more
Japanese media recently reported that Prime Minister Kishida Fumio’s approval rating stands at 26 percent, up just slightly from the 23 percent recorded in December 2023. The two figures are the lowest approval ratings for Kishida since the establishment of his Cabinet in October 2021. In the midst of political fundraising scandals, Kishida is attempting … Read more
Advertisement Prime Minister Kishida Fumio has made fresh commitments to combat rising energy and food prices. At a press conference last month in New York, Kishida said Japan’s economy was at a critical point “as to whether it can enter a new economic phase.” Last week Kishida instructed his Cabinet ministers to formulate economic measures … Read more
Advertisement Prime Minister Kishida Fumio’s new capitalism seeks to supplant the long-standing neoliberal policies that have dominated Japan since the 1980s, including the country’s more recent shift to “shareholder capitalism.” Instead, the Kishida administration is pursuing a more inclusive “stakeholder capitalism” and aims to stimulate a “virtuous cycle of growth and distribution” to increase wages … Read more