Fiscal consolidation expected to be sustained but slow amid structural challenges

20260121N Takaichi news conference

Japanese Prime Minister Sanae Takaichi has emphasized “responsible proactive fiscal policy.” © Reuters

SORA KITAJIMA

January 22, 2026 06:51 JST

TOKYO — Japanese Prime Minister Sanae Takaichi is trying to balance economic growth and market confidence with her fiscal policy, Martin Petch, senior credit officer for sovereign risk at Moody’s Ratings, told Nikkei.