Overview
- Prime Minister Sanae Takaichi launched a ¥21.3 trillion plan that includes ¥17.7 trillion in general spending, financed by higher tax revenues and new government bonds, with the cabinet set to seek a supplementary budget around November 28.
- Targeted relief features a one-off payment of ¥20,000 per child and a ¥7,000 subsidy per household for energy bills.
- Core inflation excluding fresh food rose to 3% in October from 2.9% in September, and GDP contracted 0.4% in the third quarter.
- Japan’s already heavy debt load is projected by the IMF to reach 232.7% of GDP in 2025 as bond yields climb and the yen weakens to multi-month lows.
- Finance Minister Satsuki Katayama signaled readiness to act against disorderly currency moves, while tensions with China escalated after Taiwan-related remarks, including a summons of Japan’s ambassador and unconfirmed reports of seafood import curbs.