Author: Makiko Yamazaki

Japan is steadfast in its commitment to achieving a primary budget surplus in the upcoming fiscal year, as outlined in the annual policy guidelines for budget planning. The government’s goal includes decreasing the ratio of debt to gross domestic product to ensure financial stability. With a government projection suggesting a potential primary budget surplus by fiscal 2025, Japan is optimistic about its economic outlook. This projection hinges on sustained economic growth and continued efforts to reduce spending. By adhering to these fiscal goals, Japan aims to secure its position as the world’s fourth-largest economy and maintain financial security in the…

Prime Minister Fumio Kishida’s advisory panel on growth strategies has raised concerns about the impact of the yen’s depreciation on the economy. The panel urged the government and the Bank of Japan to closely monitor the situation. The weakening yen has led to increased costs for households, particularly in terms of imported goods like food and fuel. This has become a pressing issue for Kishida’s administration as it could potentially result in higher inflation rates. The panel highlighted that the yen has depreciated by approximately 10% against the dollar since the beginning of the year. It is anticipated that this…

Japan is on the path towards normalizing monetary policy, with ruling party heavyweight Katsunobu Kato expressing support for further interest rate hikes. Kato emphasized the importance of the Bank of Japan closely monitoring economic conditions and collaborating with the government to determine the timing of rate increases. Describing a shift towards increasing prices and wages, Kato, a seasoned politician and potential future prime minister, highlighted the country’s transition from a period of stagnant growth to one of economic progression. As Japan prepares to navigate through these changes, political backing for monetary policy adjustments signals a positive outlook for the economy.…