April 20, 2026
Ministry of Finance
Keynote Speech by Minister Katayama at Japan Society (April 18, 2026)
On April 18, 2026, Minister Katayama visited New York and delivered a keynote speech at Japan Society. The Minister’s remarks are as follows.
【Introduction/Japan-US Friendship】
Chair Merit Janow and President Joshua Walker, thank you so much for giving me this wonderful opportunity to introduce Japan’s initiatives before the distinguished guests here at Japan Society today.
On this day over a hundred years ago, April 18th in 1923, the original Yankee Stadium opened its doors here in New York. Over the years, many Japanese players, including Hideki Matsui, have thrived with the New York Yankees. Today as well, a number of Japanese baseball players—most notably Shohei Ohtani— are warmly embraced by the American society. This powerfully symbolizes just how strong and deep the ties between Japan and the United States truly are.
Relations between governments must keep pace as well. The Japan–U.S. alliance is now in its “golden age.” At the Japan–U.S. Summit last month, our leaders reaffirmed concrete cooperation across a wide range of areas, including the economy, economic security, and national security.
For my part, I have been frequently communicating with my counterpart, Treasury Secretary Bessent. It’s been both in person and online, beginning with his visit to Japan shortly after the launch of the Takaichi Cabinet last October.
【Challenges around the globe】
Just before coming here, I attended the G7 and G20 meetings in Washington
D.C. There, we discussed a wide range of international challenges, including responses to the current situation in the Middle East, promotion of economic growth, supply chain resilience of critical minerals, measures to address global imbalances—particularly those arising from China’s overcapacity —and support for Ukraine.
In connection with the situation in the Middle East, we should pay close attention to Asian economies, which are highly dependent on the Middle East for oil and gas. In some Asian countries, shortages of crude oil and petroleum products are already becoming serious. Against this backdrop, Prime Minister Takaichi recently announced the Partnership On Wide Energy and Resources Resilience Asia, known as “POWERR Asia”. Through financial support and other measures of about 10 billion U.S. dollars, Japan will undertake two sets of actions for Asian economies. First, as an emergency response, Japan will provide financial support for these economies to procure oil and other essential materials and strengthen supply chains. Second, as structural measures, Japan will help enhance capacity for energy and resource supply with financial and technical support. Asian countries and Japan are deeply interconnected in various areas, including trade, supply chains, and finance. At the recent series of meetings in D.C., I stated that ensuring stability and growth in Asian economies through such support will, in turn, strengthen the global economy including Japan, and that Japan therefore remains committed to contributing to stability in the Asian and global economy.
Let me turn to the issue of critical minerals. This past January, a G7 plus Finance Ministers’ Meeting on critical minerals was convened under the leadership of Secretary Bessent. At that meeting, I shared Japan’s experience in responding to China’s rare earth export restrictions since 2010. This exchange helped initiate more substantive discussions among the Finance Ministers. Building on this momentum, we convened another meeting this week, co-chaired by me and French Finance Minister Lescure as the G7 Presidency this year.
As you can see, the close cooperation between Japan and the United States is essential to addressing key global challenges, including those related to critical minerals.
【Responsible and proactive fiscal polisy】
At the G20 meeting held under the U.S. Presidency, we discussed how to overcome the obstacles to growth and how each country can translate this into sustainable growth. In this context, I shared Japan’s current policy stance and initiatives with the G20 colleagues. Here, let me take this opportunity to introduce the macroeconomic policy of the Takaichi Cabinet.
The situation in the Middle East remains fluid, and it is too early to fully assess its impact on the Japanese economy. That said, Japan’s economy has improved remarkably. Corporate profits are at record highs. Capital investment is at historic levels. Wage growth has exceeded five percent for two consecutive years and remains solid this year. The Nikkei Stock Average has reached new historical highs.
Japan’s economy is clearly regaining momentum. As Prime Minister Takaichi declared at the dinner with President Trump on her recent visit, citing the words of former Prime Minister Abe:“Japan is back!”
Looking ahead, we will further strengthen Japan’s economy. We will advance bold and strategic investments that enhance growth based on “responsible and proactive fiscal policy”. Together with higher growth, we will steadily bring down the debt-to-GDP ratio. We will closely monitor market developments, ensure fiscal sustainability, and maintain market confidence.
【Strategic investments in key priority areas】
Japan is now in transition. We are moving from a deflationary cost cutting economy to a growth oriented one. At the same time, we are facing multiple challenges. Population is declining, what could be described as a “silent crisis”. The security environment has never been more severe or complex in the postwar era.
Under these circumstances, our potential growth has been sluggish, and private consumption has lacked momentum. In this situation, it is important to restore the strength of the Japanese economy. As a country facing population decline, achieving a “strong Japanese economy” requires strategic fiscal actions based on “responsible and proactive fiscal policy”. By strengthening Japan’s supply structure and raising our growth rate, we aim to create a virtuous cycle, where higher incomes and restored consumer confidence lead to further improvement in corporate profitability.
In order to strengthen Japan’s supply capacity, we are committed to advancing bold and strategic investments that enhance resilience against potential crises and support growth. From the perspective of economic security and growth, the government has selected 17 strategic sectors, including AI, semiconductors, and shipbuilding. For example, we are advancing efforts toward realizing “Physical AI,” which would enable autonomous robotic assistance and unmanned plant operation by aggregating and providing high-quality data. We are also increasing the budget for key priority areas, including the enhancement of our defense capabilities and free education, while securing necessary funding sources.
【Fiscal sustainability】
Turning to fiscal sustainability, government bond issuance was below 30 trillion yen in the Fiscal Year 2025 initial budget. This was for the first time in 17 years. Also, in the budget for Fiscal Year 2026, government bond issuance will remain below 30 trillion yen, pushing our bond dependency ratio down to its lowest level in 30 years. The primary balance in the central government’s general account is also expected to return to surplus for the first time in 28 years.
A temporary measure to set the consumption tax on food to zero is being discussed at the National Council on Social Security. This measure would apply only for two years, before transitioning to the introduction of a refundable tax credit. The discussion is based on the premise that we will not rely on deficit financing bonds. We are also paying close attention to potential market impacts.
Our approach has received some positive recognition from the IMF, which stresses that support for vulnerable groups should be “budget-neutral, temporary, and targeted”. When IMF Managing Director Georgieva visited Japan in March, I explained our approach carefully once again.
【Financial Services】
As Minister of State for Financial Services, I would also like to speak about our latest financial sector initiatives. To achieve a virtuous cycle of growth, including through an increased flow of Japan's household savings into productive investment, we will continue to advance our initiative to “Promote Japan as a Leading Asset Management Center”. As a foundation for this initiative, we will also continue our corporate governance reform aimed at enhancing medium- to long-term corporate value. These efforts will remain a priority under the Takaichi Cabinet.
In Japan, retail investors’ appetite for investment has been rising, driven in part by the expanded NISA. As a result, the share of household risk assets has reached a record high. Assets under management by investment managers in Japan have tripled over the past decade. In addition, around 50 foreign asset management firms have newly entered the Japanese market over the past five years. The Japanese government welcomes new entrants from abroad, as we work to further raise the quality of asset management services in Japan.
Amid ongoing digitalization and globalization of finance, the government is also supporting efforts to enhance payment systems using blockchain technologies, such as stablecoins and tokenized deposits.
Economic security is another important point for consideration. To this end, we have submitted to the Diet a bill to amend the Foreign Exchange and Foreign Trade Act. The aim is to upgrade our Foreign Investment Screening System, including through the establishment of a Japanese version of CFIUS. But let me be clear. Investment from the United States, a close and like-minded partner, continues to be fully welcomed.
【Promoting exports of Japanese agri-food products】
Before concluding, let me also say a few words about the promotion of Japanese alcoholic beverages. The Japanese government is now actively engaged in promoting exports of Japanese agricultural, forestry, and fishery products and food. The promotion of Japanese spirits and sake is an important part of my portfolio. And because New York is home to many outstanding Japanese restaurants, I hope all of you will enjoy Japanese cuisine, together with Japanese alcoholic beverages.
【Concluding Remarks】
Let me close with one final point. As global challenges grow more complex, international cooperation—and particularly Japan-U.S. partnership—becomes ever more important. In this regard, the role played by Japan Society is truly significant.
Coming back to my earlier point, at the very first game held at the original Yankee Stadium on April 18 in 1923, Babe Ruth hit a home run. He later visited Japan and inspired a generation of young Japanese baseball players.
I am not built like Babe Ruth, but as the first female Finance Minister under the first female Prime Minister, I am determined to hit many “policy home runs,” and further strengthen friendship and cooperation between Japan and the United States. Thank you for your attention.
