Japan has made headlines with the historic election of Sanae Takaichi as the country's first female prime minister. But the real question on everyone's mind is: can she fix the nation's struggling economy?
Takaichi, a protégé of former PM Shinzo Abe, has pledged to double down on his signature "Abenomics" policy of heavy government spending and easy money. What this really means is a return to the debt-fueled stimulus that defined the Abe era, despite Japan's already precarious fiscal position.
Revisiting Abenomics
The bigger picture here is that Abenomics, for all its initial fanfare, failed to deliver the economic revival it promised. While it did boost share prices and weaken the yen, it did little to address Japan's deeper structural problems like low productivity, an aging population, and stagnant wages.
As Reuters reports, Takaichi has vowed to continue this approach, with a massive $136 billion spending package and a pledge to keep interest rates low. But many economists warn this will only exacerbate Japan's debt woes and do little to fix the underlying issues.
An Uphill Battle
Takaichi also faces the challenge of governing with a minority in parliament, making it difficult to push through her economic agenda. As The Japan Times reports, her economic policy outlook remains unclear, and she'll need to find coalition partners to get anything done.
The reality is, Japan's economic problems are deeply entrenched and won't be solved by simply doubling down on the failed policies of the past. Takaichi will need to chart a new course that addresses the country's demographic challenges, boosts productivity, and tackles its ballooning debt - a tall order for any leader.
While Takaichi's election is historic, the true test will be whether she can deliver the economic revival that has eluded Japan for decades. The road ahead is fraught with obstacles, and only time will tell if she has what it takes to get the job done.