Japan’s “Iron Lady” Moment: Can Sanae Takaichi Deliver Abenomics 2.0?

by Nato Balavadze

In this paper, we discuss:

• Sanae Takaichi’s rise as Japan’s first female prime minister and her launch of “Sanaenomics,” a reboot of Abenomics;
• Her ambitious fiscal stimulus focused on strategic sectors such as semiconductors, defense, and energy;
• Japan’s structural challenges—high debt, aging population, and stagnant wages—that threaten reform success;
• The Bank of Japan’s continued ultra-loose stance keeping the yen weak and inflation pressures elevated;
• Market optimism following her election, though sustained fiscal expansion risks testing investor confidence.

Download PDF: Japan Abenomics November 2025