Global Scans · Japan · Weekly Summary

WHAT'S NEXT?: The latest sign of weakness in Japan's economy will likely add to mounting skepticism about the prime minister's expansionary policies. His coalition government has just achieved the supermajority it needs to amend the constitution which many are worried that Japan is about to remove the mask of pacificism and convert its "Self-Defense Force" into the military threat it really is.

• [New] In Japan, Rapidus is moving from R&D towards its target of mass production of 2 nm logic semiconductors by 2027, supported by funding from the Japanese government and several private sector companies. PwC
• [New] Japan: Potentially Historic Bank of Japan Meeting The Bank of Japan is widely expected to raise its benchmark interest rate by 25 basis points to 1.0% responding to persistent inflation pressures and continued weakness in the Japanese yen. LinkedIn
• [New] Growth opportunities are helped by government measures under the Digital Transformation Strategy by Japan's Ministry of Economy, Trade and Industry (METI), and continued investment in smart city modernization. Dimension Market Research
• [New] In the medium to long term, the cost structure may reverse due to a decline in ammonia production costs (the spread of green ammonia and economies of scale), but it is realistic to view the turning point as the mid-2030s. / Japan note
• [New] Japan's Ground Self-Defense Force will deploy V-22 Osprey transport aircraft based at Camp Saga to Miyako Island to practice moving casualties to Okinawa's US Marine Corps Air Station Futenma. American Enterprise Institute - AEI
• [New] The PRC has objected to the deployment of Typhon missiles and will likely maintain its rhetorical pressure campaign as Japan's exercises continue. American Enterprise Institute - AEI
• [New] Without immigration, nearly half of all municipalities in Japan are at risk of vanishing entirely by 2040. Emerging Market Skeptic
• [New] Japan faces a debt/pension crisis and depopulation (nearly half of municipalities at risk of vanishing by 2040). Emerging Market Skeptic
• [New] In Japan, more than 70% of life expectancy gains could be attributed to declines in mortality at ages 65 and over at the end of the observation period. PubMed Central (PMC)
• [New] The euro area is expected to expand by 0.8%, while Japan's growth is forecast at 0.7%. The Times Of India
• [New] Japan is projected to reach 34.9% CAGR through 2036 because insurers can build on existing shared-value insurance experience. FactMr
• [New] Data center electricity use is projected to reach 945 TWh annually by 2030, equivalent to Japan's current consumption, with U.S. data centers expected to contribute nearly 50% of national electricity demand growth. Persistence Market Research
• [New] Japan has signed on a $550 billion Strategic Industrial Fund, part of which, at President Trump's direction, will finance projects in semiconductor manufacturing and research. Institut Montaigne
• [New] ASEAN automotive markets, particularly Thailand and Indonesia, are establishing themselves as EV production hubs for Japanese and Chinese OEMs, creating greenfield harness assembly investment opportunities. IMARC Group
• [New] Japan is expected to represent approximately 32% of Asia Pacific marine peptide revenue in 2026. Persistence Market Research
• [New] Japan and South Korea face higher exposure to Gulf energy risks. Insurance Asia
• [New] Japanese manufacturer Fujikura and engineering group Aecom, based in the US, are among companies wagering that efforts to support the fusion sector will prove profitable years before it sells meaningful amounts of electricity. Electricity Info
• [New] AI is the biggest driver pushing global datacenter electricity use to more than double by 2030 to around 945 terawatt-hours, slightly more than the entire electricity consumption of Japan. theregister
• [New] Data centers already account for meaningful local electricity demand, and the IEA projects that global data-center electricity consumption will more than double by 2030 to roughly 945 TWh, slightly more than Japan's current total electricity consumption. Perspective on Risk
• [New] Asia Pacific is the fastest-growing region with a 29% CAGR, driven by rapid digitalization, cloud adoption, expanding cyber threat activity, and evolving regulatory frameworks across China, India, and Japan. Persistence Market Research
• [New] Japan, South Korea and Taiwan have increased coal procurement as a hedge against LNG disruptions, while additional support stems from reduced Indonesian domestic supply and a forecast super El Nino event lifting cooling demand in the Northern Hemisphere. Westpac IQ

Last updated: 04 July 2026