Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] India, the world's fifth-largest economy with a GDP of $4.2 trillion, is poised to surpass Japan and then Germany to become the third-largest economy globally by the early 2030s. United States Department of State
• [New] Japan aims to raise renewables to 50% by 2040, but must navigate the challenge of balancing solar expansion with the protection of cultural landscapes. IUCN
• [New] Data centers powering AI systems are projected to consume 3-4% of global electricity by 2030, roughly equivalent to Japan's entire consumption. Medium
• [New] If spending is deployed wisely, Japan could achieve a more autonomous growth trajectory - one less vulnerable to external factors such as US tariff policies or BOJ rate hikes. EMEA
• [New] Inflation has eased to 2.7%, but the Bank of Japan's upcoming rate decision will hinge on whether wage growth justifies tightening. / Japan Ag Bull Trading
• [New] Upside inflation risks are rising and said the BOJ is now in a phase of deciding to raise its policy rate from the current 0.5%, aiming to move a little closer to the neutral interest rate. / Japan Stock Market Update
• [New] Global electricity consumption by data centers will more than double between 2024 and 2030, reaching an astonishing 945 terawatt-hours - a power demand equivalent to that of Japan. Bizclik Media Ltd
• [New] Electricity demand from data centers worldwide is set to more than double by 2030 to around 945 terawatt-hours - slightly more than the current entire electricity consumption of Japan. ST
• [New] Power demand from AI data centers will double by 2030, reaching 945 terawatt-hours, more electricity than Japan currently consumes. investing.com
• [New] Japan already carries the highest debt-to-GDP ratio among advanced economies, meaning that further large-scale spending could strain fiscal sustainability and unsettle financial markets. Modern Diplomacy
• [New] Proactive fiscal spending could generate a new cycle of growth by fostering innovation, strengthening supply chains, and reinforcing Japan's national security posture. Modern Diplomacy
• [New] Japanese Citizens, The general public could see relief from cost-of-living pressures and new job opportunities, but also face the long-term risk of higher national debt. Modern Diplomacy
• [New] Japan, which also promotes inbound tourism, aims to receive 60 million visitors in 2030, up from 50 million last year. Boston Herald
• [New] The Japanese Yen is trading strongly today near recent highs, underpinned by expectations of BoJ rate normalization and global risk sentiment, while the US Dollar is handicapped by dovish Fed bets and political uncertainty. IC Markets | Official Blog | Blog
• [New] Under Takaichi, Japan could deepen its friendshoring strategy, redirecting investment and manufacturing capacity towards the likes of Vietnam, Indonesia and Thailand. South China Morning Post
• [New] The Bank of Japan is still likely to increase interest rates in the fourth quarter of the year, which could help the yen recover against the Singapore dollar. CNA
• [New] Japan, where the voluntary GX-ETS is expected to evolve into a mandatory system, covering over 700 companies (emitting over 100,000 tonnes / of CO2 per year) and more than 50% of national emissions. Carbon Market Watch
• [New] The Japanese health system faces a current and enduring challenge due to inherent vulnerability in health financing as a result of growing fiscal deficit in the context of a rapidly growing ageing population, increased social expenditure, and a lower funding base. PubMed Central (PMC)
• [New] The Japanese health system faces an insidious test to its ongoing resilience in light of growing expenditure and decreasing funding base, with an expected JPY 27 trillion shortfall by 2040 unless reform occurs. PubMed Central (PMC)
• [New] There is expected to be a rise in the ageing rate to 36.3% by 2045, with an associated increase in healthcare costs to around Japanese Yen 89 trillion (more than 1.6 times the level of 2023). PubMed Central (PMC)
• [New] In 2025, Japan plans to take its first steps to achieving space solar power by launching a 180 kg satellite into low Earth orbit to send a meagre 1 KW of power to a ground antenna. oilprice.com

Last updated: 25 October 2025