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Japan cautious on economy as Trump's policies take centre stage

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Japan's government on Thursday maintained a cautious outlook for the economy in part as policymakers kept a wary eye on U.S. President Donald Trump's policies and their potential impact on global growth.
The article from Reuters discusses Japan's cautious economic outlook as the country approaches the 2025 Osaka-Kansai Expo, with Prime Minister Fumio Kishida's policies taking center stage. Despite a recent economic contraction, Kishida has pledged to continue with his "new capitalism" initiative, focusing on wealth redistribution and economic growth. The government is set to unveil a new economic package in October, aiming to address inflation and support wage increases. However, there are concerns about the sustainability of Japan's economic recovery, with potential policy shifts if the Liberal Democratic Party (LDP) loses power in upcoming elections. The article also touches on the political landscape, noting that Kishida's leadership might be at risk due to public dissatisfaction with his handling of various issues, including the economy and political scandals.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/japan/japan-cautious-economy-trumps-policies-take-centre-stage-2025-01-23/ ]