Japan’s economy and government policies in the post-COVID-19 context

Abstract

This research article examines the Japanese government's support policies during the COVID-19 pandemic. The government implemented macroeconomic measures, including monetary and fiscal policies, to mitigate the pandemic's adverse effects and support economic recovery. While these policies achieved certain successes, the Japanese economy continues to face significant challenges, such as slow economic growth, a large budget deficit, and rising public debt, which threaten the long-term sustainability of public finances. Additionally, inflation has exceeded target levels, but workers' wages have stagnated, creating financial hardships for many households. Rapid population aging further undermines the sustainability of the social security system, placing additional pressure on public spending, monetary policies, and fiscal strategies. These challenges complicate Japan's efforts to sustain economic growth and uphold living standards.