Japan's New PM Takaichi Unveils ¥13.9 Trillion Economic Stimulus, Prioritizing Economic Security

Tokyo – Sanae Takaichi, Japan's newly elected first female Prime Minister, has swiftly moved to address the nation's economic and security challenges, unveiling a comprehensive economic stimulus package valued at over ¥13.9 trillion ($92.19 billion). Her administration is placing a strong emphasis on economic security, a theme recently highlighted in an Eurasia Review op-ed and a report from The National Bureau of Asian Research (NBR). The NBR, in a recent social media post, stated, > "Eurasia Review op-ed 'Japan’s New Era Of Economic Security Under #Takaichi ' references an NBR report. See the op-ed: https://t.co/OE3fGuQJ9Y Read the NBR report 'U.S.-Japan Technology and Economic Security: Achieving Resilience in an Era of Disruption': https://t.co/khe4z3UkKF."

Prime Minister Takaichi, who assumed office on October 21, 2025, after winning 237 of 465 votes in the lower house, is a conservative hardliner and a known proponent of "Abenomics," the economic policies of the late former Prime Minister Shinzo Abe. Her stimulus plan aims to counter inflation, invest in growth industries, and bolster national security. This proactive fiscal approach, dubbed "Sanaenomics" by some, includes measures to abolish the provisional gasoline tax rate and expand local government grants, particularly for small and medium-sized businesses.

The focus on economic security under Takaichi's leadership aligns with broader discussions on global resilience, as detailed in the NBR's February 2025 report, "U.S.-Japan Technology and Economic Security: Achieving Resilience in an Era of Disruption." The report examines how the United States and Japan are working to enhance their economic and technological resilience against digital and supply chain shocks. Key areas of cooperation include financing resilient digital infrastructure, enhancing cyber risk resilience, and developing measures to counter economic coercion.

Japan's commitment to economic security has been institutionalized through initiatives like the Economic Security Promotion Act (ESPA) and the establishment of an economic security minister role. The NBR report underscores that Japan's strategy aims for "strategic autonomy" by reducing excessive dependence on other countries and "strategic indispensability" by maintaining areas where Japan is irreplaceable. This is further reinforced by the U.S.-Japan Competitiveness and Resilience (CoRe) Partnership and the Economic 2+2 framework, which coordinate efforts in critical technologies, supply chain resilience, and countering economic coercion.

Despite strong bilateral cooperation, the NBR report also identifies potential challenges, such as differing views on free trade between the U.S. and Japan, and Japan's preference for denial-based strategies over punitive measures in countering economic coercion. Takaichi's administration faces the task of navigating these complexities while pushing forward with her ambitious agenda to strengthen Japan's economy and national interests in an increasingly volatile global landscape. Her immediate priorities include tackling rising prices and ensuring a stable government, with a budget approval deadline by the end of February.