Japan's Economic Landscape: Challenges and Adaptations

This chapter analyzes the current economic situation in Japan, focusing on the effects of U.S. tariff policies and the strategies Japanese exporters, particularly in the automotive sector, are employing to adapt. It discusses the role of political changes and potential fiscal stimulus in enhancing domestic demand, alongside the cautious stance of the Bank of Japan on interest rates. The chapter also compares the experiences of younger and older consumers amid inflationary pressures and explores the resilience of consumer spending trends across the Asia-Pacific region.