Archive · 1 Dec 2025
Sanae Takaichi's Economic Gameplan for Japan
Sanae Takaichi, Japan's new prime minister, has introduced a big economic plan.
She wants to cut taxes and spend more money to help the economy grow.
She also wants to keep making companies more accountable to their shareholders, which was started by her mentor, former prime minister Shinzo Abe.
Takaichi is taking a tough stance against China but is working well with the US.
She thinks the Japanese yen is fairly valued and expects it to get a bit stronger.
She's also pushing for tax cuts on gasoline and energy bill subsidies to help people deal with rising food prices.
Sanae Takaichi, Japan's first female prime minister, announced a JPY 21.3 trillion economic package with tax cuts and spending increases.
Japan's core CPI is around 3%, and real wage growth has exceeded inflation, increasing household disposable income.
Takaichi plans to continue corporate governance reforms to make firms more accountable to shareholders.
She has taken a hawkish stance against China but is working to reduce US import tariffs on Japanese goods.
The Japanese yen is considered attractively valued, with a target exchange rate of 120 against the US dollar.
- Who
- Sanae Takaichi, Japan's first female prime minister and head of the Liberal Democratic Party (LDP)
- What
- Announced an economic gameplan including tax cuts, spending increases, and corporate governance reforms
- When
- Recent weeks, following her historic election
- Where
- Japan
- Why
- To spur economic growth, shore up political support, and address inflation and food deficits
- Prime Minister
- Sanae Takaichi
- Party
- Liberal Democratic Party (LDP)
- Economic Package
- JPY 21.3 trillion (USD 136 billion)
- Core CPI
- 3%
- US Import Tariff on Japanese Goods
- 17%
- Target Yen Exchange Rate
- 120 against the US dollar
- Japan's Food Deficit in 2024
- JPY 7.7 trillion (USD 49 billion)