Japan's economy slips, Takaichi rolls out big rescue plan
Japan's economy shrank by 0.4% from July to September 2024—the first drop in a year and a half.
While not as bad as experts feared, the dip comes from weak growth in household spending and a decline in exports, even though businesses are still looking to invest.
Why it matters
To help turn things around, Prime Minister Sanae Takaichi is lining up a massive 17 trillion yen stimulus package expected to get the green light soon.
But there's more on her plate: tensions with China are heating up after she suggested Japan could support Taiwan militarily if needed.
This has sparked diplomatic friction and travel warnings, with analysts warning that China might hit back by targeting Japan's car industry, which is under pressure from Chinese competitors.
The new stimulus aims to steady the economy and keep Japan on track during these choppy times.