Bessent Urges Japan to Move Beyond Abenomics

US Treasury Secretary Scott Bessent has called on Japan to move beyond its reflationary policies, known as Abenomics, and focus on managing the consequences of their success. Speaking after the G20 finance ministers' meeting in Asheville, Bessent credited Abenomics with pulling Japan out of a prolonged period of disinflation and restructuring parts of its economy.

Bessent said that some of his discussions with Japanese officials were private but reiterated his publicly expressed assessment of the country's economic direction. He noted that inflation near the Bank of Japan's long-standing target would indicate that the reflationary programme had achieved its purpose, and now it was time for Japan to 'stop the reflation'. Bessent also described the next phase of Japan's economic policy as 'Takaichi Nomics', although he did not specify the fiscal or monetary measures he believed it should involve.

He argued that Japan's current economic position is a sharp reversal from the pessimism surrounding the country more than a decade ago. Bessent portrayed Japan as one of the most vibrant economies in the world, saying 'In 2011, Japan was written off as dead' but now it has achieved its central objective.

The G20 chair's statement reaffirmed the importance of central bank independence and said monetary authorities remained strongly committed to maintaining price stability and financial-system resilience. It also called on governments to safeguard fiscal sustainability, rebuild financial buffers, and encourage investment that improves productivity.