Japan economy not worse than Greece says Professor Seijiro Takeshita
- Adam German
- 2 days ago
- 2 min read
On May 19th, Japan prime minister Shigeru Ishiba said, during a parliamentary debate, that the nation’s financial conditions are worse than Greece.
Not so, says Seijiro Takeshita, Dean of the Graduate School of Management, Informatics and Innovation at the University of Shizuoka; a department where he is also a professor.
Speaking to CGTN Europe on May 31st, Mr. Takeshita explains why he fundamentally disagrees with Mr. Ishiba’s statement.
Key Takeaways
Japan holds the highest net assets seen in the past 33 years, recently second only to Germany, despite ongoing concerns over national debt.
Over 90% of Japan’s public debt is domestically held, setting it apart from debt-ridden economies like Greece.
Core inflation in May surged to a two-year high, driven by skyrocketing food and energy prices.
Rice prices have soared by 93% year-on-year, while energy costs jumped more than 8%, pushing gas prices up by 6.6%.
Japanese consumers remain among the world’s most cautious spenders, with deep-rooted risk aversion continuing to shape spending habits.
Government stimulus has done little to boost household consumption due to stagnant wages and weak consumer confidence.
For over two decades, wages remained flat even as corporate profits hit record highs.
Recent wage hikes are a turning point, but inflation is quickly eroding any gains in household purchasing power.
The Bank of Japan faces major limitations in tackling yen depreciation and inflation without the financial clout of the Fed or ECB.
Japan’s economic outlook is further complicated by weakening export demand and growing trade tensions with the United States.
Who is Seijiro Takeshita?
Professor Seijiro Takeshita is Dean of the Graduate School of Management, Informatics and Innovation at the University of Shizuoka and a leading expert on Japanese corporate governance, financial systems, and macroeconomic policy.
Professor Seijiro Takeshita courtesy of the BBC in a 2015 article. Mr. Takeshita has supplemented professional achievements with avid rugby play and coaching for many years.
With decades of experience in both academia and global finance - including senior roles at Deutsche Bank, ABN AMRO, and Mizuho International in London - Mr. Takeshita brings a uniquely international perspective to Japan’s economic challenges.
A fluent commentator in both English and Japanese, he has appeared on over 2,500 television and radio broadcasts worldwide, offering insight into Japan’s economy for outlets such as BBC, CNN, Bloomberg, and CGTN.
