These explanatory materials were prepared by the Director-General for Policy Planning (Economic and Fiscal Analysis) at the Cabinet Office to provide an accessible explanation of the content of the Annual Report on the Japanese Economy and Public Finance for FY2025.
Under the subtitle "Overcoming Internal and External Risks to Realize Growth-Oriented Economy Led by Wage Increases," the materials organize the key points of the annual economic and fiscal report across 21 pages. Positioned as a report by the Minister of State for Economic and Fiscal Policy, the materials concisely present the main analytical results and policy recommendations of the report, incorporating charts and tables.
Chapter 1, "Trends and Challenges in the Japanese Economy," provides detailed analysis of economic developments through mid-2025. Section 1 organizes economic trends through mid-2025 chronologically, Section 2 analyzes price and wage trends as "Movements Toward Realizing a Virtuous Cycle," and Section 3 comprehensively examines the current state and challenges of public finance.
Chapter 2, "Toward Sustainable Wage Growth and Recovery in Personal Consumption," focuses on the important challenge of creating a virtuous cycle between wages and consumption in Japan's economy. It presents policy directions based on specific data and analysis regarding challenges for personal consumption recovery, measures for realizing sustainable wage growth, and long-term changes and challenges in the labor market.
Chapter 3, "Changing Global Economy and Challenges for Japan's Corporate Sector," examines the impacts of changes in the international economic environment on Japanese companies and response measures. It analyzes changes and challenges in Japan's relationship with the global economy and long-term changes and challenges in corporate behavior, incorporating international comparative data.
The explanatory materials include numerous graphs and tables, designed so that trends in major economic indicators such as GDP growth rates, inflation rates, wage growth rates, and employment statistics can be understood visually. Rich international comparative data is also included, clearly showing Japan's international positioning.
The article demonstrates that this is an important policy document that presents, in an accessible manner based on data, the policy directions for overcoming internal and external risks facing Japan's economy and realizing sustainable growth led by wage increases.