Japan businesses hope for sustained economic growth under next PM

Japan's business leaders have voiced optimism over Shigeru Ishiba’s election as the new president of the ruling Liberal Democratic Party, hoping his leadership will accelerate economic growth. Ishiba is set to replace Fumio Kishida as prime minister, and business executives are eager for him to address key economic challenges, including rising wages and prices, which signal signs of recovery. 

Masakazu Tokura, chairman of the Japan Business Federation, the nation’s largest business lobby, expressed confidence in Ishiba’s potential to spur innovation, calling him “a leader ready to propel innovations.” Tokura emphasized the need for political stability, stating that Japan is at a critical juncture where effective policy implementation could help the country fully emerge from deflation.

Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, praised Ishiba for his deep understanding of policy and his ability to tackle difficult issues head-on. Kobayashi highlighted the recent wage hikes, the largest in over 30 years, as a positive step toward economic growth and urged Ishiba to sustain this momentum.

The Japan Association of Corporate Executives also called on Ishiba's government to address the economic strain on working generations by improving the efficiency of government spending, particularly in health care, child-rearing, and national defense. Takeshi Niinami, chair of the association, stressed the importance of revitalizing regional economies and enhancing the nation’s overall growth rate.

Retail giant Seven & i Holdings’ president, Ryuichi Isaka, emphasized the importance of cooperation between the public and private sectors to create a “virtuous cycle” of economic growth and increased consumption under Ishiba’s administration.

As Japan’s economy reaches a pivotal moment, business leaders are hopeful that Ishiba’s leadership will drive the country forward on the path to sustainable growth.