Japan shifts economic agenda from stimulus to structure

With a shrinking population and rapidly aging society, Japan is moving away from demand-deficient conditions of the post-bubble era toward structural economic policies.

A Japan Times commentary outlines Japan's economic agenda shifting from stimulus measures to structural reforms. This change is driven by a shrinking population and rapidly aging society, departing from the demand-deficient conditions that marked much of the post-bubble era. Keywords include Sanae Takaichi, COVID-19, BOJ, AI, yen, Japanese economy, and Forex. The piece was published on March 18, 2026.

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A Communist Party newspaper has warned Japan that tying economic growth to 'militaristic adventurism' risks instability, with citizens bearing the costs. The piece criticizes Prime Minister Sanae Takaichi's 'Takaichinomics' as no cure for the economy but a poison accelerating its decay.

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Japan's largest companies raised capital spending in the final quarter of last year, signaling stronger corporate sentiment. The Finance Ministry reported a 4% rise in spending on goods excluding software compared to the previous quarter. Prime Minister Sanae Takaichi is pushing for more investment in strategic sectors.

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