Japan

Japan is experiencing overlapping economic challenges and policy shifts. The central bank has raised interest rates to combat inflation, while the yen has strengthened against other currencies, affecting tourism and travel costs for visitors. The country is simultaneously managing export performance, with recent gains in chip shipments, and grappling with structural issues including a shortage of farmers and foreign workers.

Domestic concerns span environmental and safety matters. Japan faces recurring problems with wildlife, including deadly bear attacks that have prompted culling measures, and natural disasters such as earthquakes. The country is also addressing climate adaptation, with reports of extreme heat affecting workers and farmers. Energy policy is in flux, with decisions pending on solar subsidies, aviation fuel taxes, and the restart of nuclear plants following safety incidents.

Demographic and social changes are reshaping Japan's society. The country is adapting policies around foreign residents, including changes to residency fees and new language programs, as immigration becomes a more prominent feature of national life. Technological policy is evolving as well, with new requirements for AI firms to disclose training data and efforts to address cybersecurity threats facing local governments.