Japan’s New Economic Minister Highlights Pros and Cons of Weak Yen Amid Rising Costs

Japan’s newly appointed Economic Revitalization Minister, Minoru Kiuchi, stated on Tuesday that while a weak yen increases import costs and domestic prices, it also offers significant advantages for the nation’s economy. Speaking at a press conference, Kiuchi explained that the depreciation of the yen boosts exporters’ profits and stimulates domestic capital expenditure, helping to strengthen Japan’s industrial base and overall economic activity.

However, he acknowledged that the weaker yen poses challenges for households and small businesses by driving up living expenses through higher prices on imported goods and energy. “A weak yen pushes up import costs and domestic prices, which in turn effectively weighs on the purchasing power of households and some companies,” Kiuchi said. He emphasized that the government recognizes this burden and plans to compile a swift policy package to cushion the blow to consumers and support struggling sectors.

Despite the short-term pain, Kiuchi maintained that the long-term benefits of a weaker yen—particularly its positive impact on exports and investment—cannot be overlooked. He stressed the importance of maintaining stable foreign exchange rates that reflect Japan’s economic fundamentals rather than speculative movements. The balance between supporting domestic purchasing power and encouraging export-led growth will remain a key focus of Japan’s economic strategy.

Economists note that a weak yen often benefits large exporters like Toyota and Sony but strains import-dependent sectors and households facing rising energy and food prices. As the yen continues to hover at multi-decade lows, the government’s forthcoming relief measures are expected to play a crucial role in stabilizing both the economy and public sentiment.