Finance Minister Katayama delivers a speech in New York on April 18. (Pool photo/Kyodo)
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Japan's Finance Minister Satsuki Katayama used a speech in New York on April 18 to signal confidence in the direction of the Japan-US relationship. Describing the alliance as entering a "golden age," she outlined Japan's efforts to adapt to a more volatile global order.
A central theme of her remarks was critical minerals and supply chain security. She emphasized, "The close cooperation between Japan and the United States is essential to addressing key global challenges, including those related to critical minerals."
Katayama also highlighted Japan's role in broader international coordination, referring to a G7 meeting on critical minerals held in Washington on April 17, which brought together major producing countries including Brazil, South Africa, and India. The session was co-chaired by Katayama and French Finance Minister Roland Lescure.
'POWERR Asia' and Energy Security
She also pointed to rising energy insecurity in parts of Asia, citing tensions in the Middle East. "In some Asian countries, shortages of crude oil and petroleum products are already becoming serious," she warned.
Against this backdrop, Katayama outlined Japan's "POWERR Asia" initiative, announced by Prime Minister Sanae Takaichi in mid-April. The package, valued at around $10 billion, is designed to provide financial and institutional support to strengthen energy security across Asia.
It includes funding to help partner countries procure crude oil and petroleum products in the short term, while also supporting longer-term measures such as expanding stockpiles, improving energy infrastructure, and reinforcing regional supply chains.
Fiscal Policy and Economic Turnaround
On domestic fiscal policy, Katayama stressed fiscal discipline and a clear shift in Japan's economic trajectory. She noted that government bond issuance had fallen below ¥30 trillion (around $188 billion) for the first time in 17 years, adding that "the primary balance in the central government's general account is also expected to return to surplus for the first time in 28 years."
She framed this as part of a broader structural change in the economy, arguing that Japan is moving from a "deflationary, cost-cutting economy to a growth-oriented one."
Her assessment of economic conditions was notably upbeat: "Corporate profits are at record highs. Capital investment is at historic levels. Wage growth has exceeded five percent for two consecutive years."
Investment-Led Strategy
Katayama said policy is now focused on sustaining that momentum through what she called "bold and strategic investments that enhance resilience against potential crises and support growth." She highlighted 17 priority sectors, including artificial intelligence, semiconductors and shipbuilding, as central to this strategy.
The aim, she said, is to establish a "virtuous cycle" in which rising incomes and stronger consumer confidence feed back into corporate performance and further investment.
Katayama closed her remarks by saying: "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."
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Author: Japan Forward
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