Mon, 09 Feb 2026

Mon, 09 Feb 2026 Japan has given Takaichi a landslide win - but can she bring back the economy?

Japan has been battling sluggish growth, mounting public debt and a rapidly ageing workforce.

* Japan's Prime Minister Sanae Takaichi and her Liberal Democratic Party (LDP) won a decisive majority of 316 out of 465 seats.
* The party campaigned on promises of increased spending, investment in key industries, and tax cuts to boost growth.
* Investors have welcomed the election result with a positive market reaction, dubbed the "Takaichi trade".
* However, concerns remain over how Takaichi will fund her plans, particularly given Japan's large public debt and rising interest rates.
* Economists warn that more spending could stimulate inflation and increase living costs.
* The government also needs to address labor shortages, aging population, and immigration issues to achieve growth.
* Takaichi has signalled she is unlikely to increase immigration, instead relying on technology and women's participation in the workforce.
* Japan's dependence on China in critical sectors such as rare minerals and pharmaceuticals is a concern.
* Prime Minister Takaichi aims to reduce this dependence and deepen ties with Washington while being cautious not to choose sides outright.
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