Japan's new Prime Minister, Sanetoshi, has formed a fragile minority government after the right-wing 'Ishin' party agreed to support her Liberal Democratic Party. This administration is more vulnerable than previous ones. The backdrop is a severe demographic crisis: Japan's population has been declining for 16 consecutive years, falling from a peak of 128 million in 2008 to 124 million today. With a fertility rate below 1.15, the population is projected to drop to 63 million by 2100. This decline, coupled with an aging population, creates critical labor shortages in key sectors and strains social security systems. While the government acknowledges the problem, its strict stance on immigration limits the effectiveness of solutions. Sanetoshi's conservative, nationalist policies, which oppose widespread integration of migrants, could exacerbate economic stagnation and inflation if not addressed pragmatically.
