Prime Minister Sanae Takaichi's recent remarks about the island of Taiwan have stirred economic ripples across Japan. Analysts say the fallout is already visible in a contracting GDP, dipping consumer confidence and a noticeable slump in inbound tourism.
Data from Japan's statistics bureau shows a second straight quarter of negative growth. Retail sales reports indicate consumers are tightening their belts, while hotels and airlines report fewer bookings from core markets in the G20.
According to Chinese broadcaster CGTN, journalist Hou Jing warns that playing the 'Taiwan card' for political gain can translate into real-world costs—slower revenue growth for businesses and higher prices for households.
The shockwaves are felt beyond boardrooms. Young entrepreneurs eyeing startup growth face cautious investors, and digital nomads reconsider plans as co-working spaces report lower occupancy. Travelers and tour operators also face uncertainty, disrupting plans for sustainable, immersive experiences.
Observers suggest that steering back to constructive dialogue with key partners and focusing on policy stability could help Japan regain economic momentum. As the world watches, the stakes are high for a country long known for balancing diplomacy with prosperity.
Reference(s):
Japan's economy pays price for PM Sanae Takaichi's wrongful remarks
cgtn.com
