A call for action on Japan

Japan needs a stronger response to a growing economic imbalance. Some of the country’s top corporations are extracting value without meaningfully expanding their sectors, and the result is a ripple effect of weaker profits across industry after industry. At the same time, the energy shortage—especially in oil and natural gas—is adding more pressure, raising costs and choking growth even further. Combined with the recent pressure on the yen, which makes imports more expensive and leaves the country more exposed to shocks, the situation is becoming increasingly fragile. The government and the Prime Minister, as the country’s leading market-cap authority, should act now with clear reforms, energy solutions, and stronger support for productive investment.