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Japan's second wind: Why the world’s most overlooked market is back in play

Louis Chua
Louis Chua  • 5 min read
Japan's second wind: Why the world’s most overlooked market is back in play
As wage growth steadies and consumer confidence strengthens, sectors such as retail, travel, consumer electronics and entertainment are showing significant upside / Photo: Bloomberg
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After decades of stagnation, Japan is poised for a remarkable economic revival, with GDP growth projected to surge in 2025. Once overlooked by global investors due to deflation, stagnant wages and corporate inertia, Japan is now witnessing a significant shift: inflation is stabilising, wages are rising, corporate governance is evolving, and capital markets are responding positively.

This transformation is not just a cyclical rebound; Japan’s economic revival is being fuelled by structural changes that were long considered out of reach. While much of the world grapples with persistent inflation and tightening monetary policies, Japan is staging a comeback — quietly, but decisively.

Tariffs peaking, but resilience shines through

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