Business Leaders Praise Takaichi’s Economic Policies; Executives Express Positive Outlook for Economy, Wage Growth

The Yomiuri Shimbun

21:00 JST, January 7, 2026

Business leaders from three major economic organizations, including the Japan Business Federation (Keidanren), recently expressed their approval of the economic policies of the administration of Prime Minister Sanae Takaichi.

At a New Year’s celebration event held by these groups in Tokyo on Tuesday, many participants expressed a positive outlook on the administration’s push for continued wage hikes.

However, there was also growing concern over international uncertainty, including the deterioration of Japan-China relations and U.S. military operations in Venezuela.

Growth strategy

At a joint press conference, Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, indicated expectations that the Japanese economy will slowly move toward recovery, driven by rising wages and increased capital investment.

“This will be the year of a full-scale transition to a growth-oriented economy,” he said emphatically.

With the aim of building a “strong economy,” the Takaichi administration has implemented policies aimed at expanding public-private investment across 17 strategic sectors, including artificial intelligence and semiconductors, as part of its growth strategy. Stock prices on the Tokyo Stock Exchange have continued to rise, driven by high expectations for the success of these policies.

Keidanren Chairman Yoshinobu Tsutsui also endorsed the Takaichi administration’s approach, noting that it seems set to take a diversified growth strategy toward its investments. He added that Keidanren is committed to supporting the government’s efforts by strengthening public-private collaboration.

Noting the introduction of policies such as the use of the supplementary budget to boost consumption, Sumitomo Corp. President Shingo Ueno expressed high hopes for the revitalization of the Japanese economy.

Akihiko Ogino, the president of Daiwa Securities Group Inc., urged the government to continue its efforts to make the country a center for asset management and bolster Japan’s growth by accelerating the shift from savings to investment.

Wage hikes

Wage increases that outpace inflation are vital to the growth of the Japanese economy. According to a Keidanren survey, the average wage increase rate in the 2025 “shunto” spring wage negotiations exceeded 5% for the second consecutive year.

Looking ahead to the 2026 spring wage negotiations, Akio Yamaguchi, the chair of the Japan Association of Corporate Executives (Keizai Doyukai), noted that about 80% of companies that responded to a questionnaire from the association said they plan to increase wages.

Lawson Inc. President Sadanobu Takemasu emphasized the importance of raising real wages, stating that the company is targeting an increase of around 5%.

Similarly, Kentaro Okuda, the president of Nomura Holdings Inc., indicated that his company is considering wage increases of 5% or more.

Concerns over global uncertainty

Business leaders are growing increasingly concerned about global instability and the current tensions between Japan and China. As China’s backlash to Takaichi’s remark on a possible Taiwan contingency intensifies, Junro Ito, the executive chairman of Seven & i Holdings Co., has called for a swift resolution. He warns that prolonged friction between the two countries could dampen store revenues in tourist areas.

Ricoh Co. Chairperson Yoshinori Yamashita said, “We are working to anticipate what might happen to our production bases [in China] and be prepared for it.”

A business delegation to China which was originally planned for this month by major economic organizations has been postponed.

“While the postponement is regrettable, it is important to constantly seek opportunities for dialogue,” Tsutsui said.