FY2026 Report: Challenges of a Full-Scale Shift to a Growth-Oriented Economy

The report consists of three chapters. Chapter 1, “Current Economic Conditions and Challenges,” examines the impact of rising crude oil prices, trends in prices and wages, and developments in Japan’s real economy. Chapter 2, “Structural Changes in the Economy and Their Impact on Households,” examines impacts on households, labor demand, the job seeker and employer market, time, and labor supply. Chapter 3, “Changes in the Price Environment and the Accumulation of Growth Capital,” examines corporate behavior, corporate balance sheets, capital stock, wages and prices, and equipment investment.

The chapters and sections are organized as follows. Chapter 1 consists of Section 1, “Impact of Rising Crude Oil Prices and Trends in Prices and Wages,” and Section 2, “Developments in Japan’s Real Economy.” Chapter 2 consists of Section 1, “Impact on Households of an Economy with Fluctuating Wages, Prices, and Interest Rates,” Section 2, “Changes in Labor Demand and the Job Seeker and Employer Market,” and Section 3, “Time and Labor Supply.” Chapter 3 consists of Section 1, “Changes in Corporate Behavior Beginning to Emerge,” Section 2, “Balance Sheets of Japanese Companies: Toward Further Accumulation of Capital Stock,” and Section 3, “Moderate Increases in Wages and Prices and Expansion of Equipment Investment.”