ADB President: "No One Considers Japan a Superpower Anymore"

Masato Kanda, President of the Asian Development Bank
Calls for Sweeping Structural Reforms Including the Labor Market

Masato Kanda, President of the Asian Development Bank (ADB), highlighted Japan's declining economic status and called for sweeping structural reforms to sectors such as the labor market.

President Lee Jae-myung is meeting with Masato Kanda, President of the Asian Development Bank (ADB), at the Blue House Main Building on the morning of the 14th. Blue House.

The Yomiuri Shimbun reported on the 17th that President Kanda, in a lecture delivered the previous day at the Yomiuri International Economic Dialogue held in Tokyo, stated, "No one considers Japan a superpower anymore."

He stressed the need to "raise productivity and accelerate industrial renewal," and pointed out that Japan's share of total GDP in the Asia-Pacific region, which exceeded 50% in 2000, is expected to fall to around 10% by 2025. Over the same period, China’s share has grown close to 50%, and India has also expanded its economy to a level comparable to Japan's.

He further pointed out growing global economic uncertainty, citing separate factors such as instability in the Middle East and the rapid advancement of artificial intelligence (AI), and emphasized the importance of resolving these issues through international cooperation.

According to ADB forecasts, in 2026, the inflation rate for emerging economies in the Asia-Pacific region is expected to rise by 1.3 percentage points compared to the previous year, while GDP growth is projected to decline by 0.6 percentage points.

Regarding the persistent weakness of the Japanese yen, he remarked, "In the medium to long term, exchange rates reflect a nation's strength," adding, "Improving competitiveness is essential to protect Japan's external purchasing power." He also noted, "Fundamental structural reforms, including those in the labor market, are urgently needed."

Meanwhile, President Kanda is a career finance official who, after graduating from the University of Tokyo, began his public service at the Ministry of Finance (formerly the Ministry of the Treasury) in 1987. He served as Vice Minister of Finance for International Affairs, overseeing foreign exchange policy, for the past three years.

He ran unopposed for this ADB presidency, and was elected as the 11th president with unanimous consent in a confidence vote conducted among member countries and regions. With this appointment, a Japanese national has held the ADB's top leadership position for the 11th consecutive term since its founding. The ADB, established in 1966 under Japanese leadership, aims to promote development and cooperation among developing countries in the Asia-Pacific region. Its headquarters are currently located in Manila, Philippines.

This content was produced with the assistance of AI translation services.