The Economy panel featured presentations from Professor Hiroshi Ohashi of the University of Tokyo and Professor Shujiro Urata of Waseda University, followed by a discussion including Tomoko Hayashi. The panel explored various aspects of Japan’s economic policies, industrial strategies, and international trade relations, providing insights into current challenges and future directions.

• Professor Ohashi discussed Japan’s industrial policies, focusing on the shift from traditional industry-specific approaches to a more holistic strategy encompassing innovation and green technologies.
• The panel highlighted the importance of balancing competition policy with industrial policy, noting that Japan is re-entering the realm of active industrial policy after a period of market-led approaches.
• Japan’s Green Transformation (GX) policy was a key topic, integrating energy, climate, and industrial policies to drive economic growth through clean energy transition and decarbonisation efforts.
• Professor Urata presented on Japan’s international economic policy, particularly its free trade agreements (FTAs) and economic partnership agreements (EPAs), noting that about 80% of Japan’s trade is now covered by such agreements.
• The panel discussed Japan’s efforts to increase inward foreign direct investment (FDI), which remains low compared to other developed economies, and the challenges in attracting foreign companies.
• Japan’s ageing population and its impact on the economy were addressed, with panellists noting both challenges and opportunities, such as the high health levels of Japanese elderly.
• The discussion touched on Japan’s potential growth rate, currently estimated at around 0.6%, and strategies to enhance it, including improving productivity and mobilising resources more effectively.
• Panellists explored the changing dynamics of Japan’s labour market, including the increasing participation of women and elderly workers, and the need for greater labour mobility.
• The impact of technological changes, such as the shift towards electric vehicles, on Japan’s traditional industries was discussed, along with strategies for adaptation.
• The panel concluded by emphasising the need for Japan to continue reforming its economic structures, enhance productivity, and foster innovation to maintain competitiveness in the global economy.