▲ ADB President Masato Kanda (left) meeting with President Lee Jae-myung
Asian Development Bank (ADB) President Masato Kanda, a Japanese national, warned that Japan's economic standing has plummeted sharply and called for sweeping structural reforms in areas such as the labor market.
According to the Yomiuri Shimbun on the 17th, President Kanda pointed out during a lecture at the Yomiuri International Economic Society meeting held in Tokyo the previous day that "no one now thinks of Japan as a superpower," adding that "we must raise productivity and promote industrial metabolism."
He explained that Japan's share of the total gross domestic product (GDP) in the Asia-Pacific region, which exceeded 50% in 2000, has dropped to around 10% in 2025. In contrast, China's share has grown close to 50%, and India has also grown enough to stand shoulder-to-shoulder with Japan.
He also noted that uncertainties in the global economy are growing due to instability in the Middle East and the rapid development of artificial intelligence (AI), emphasizing the importance of solving problems through international cooperation.
According to ADB projections, the inflation rate in emerging Asia-Pacific economies for 2026 is expected to rise by 1.3 percentage points compared to last year, while GDP growth is projected to fall by 0.6 percentage points.
Regarding the persistent weak yen trend in the foreign exchange market, he added, "Exchange rates reflect national power over the medium to long term. Enhancing competitiveness is essential to protect Japan's external purchasing power, and for this, fundamental structural reforms such as in the labor market are urgent."
(Photo: Yonhap News)
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