While the global order was shaken in 2025, Japan still found reasons for optimism: It swore in its first female prime minister, the stock market hit record highs and the Osaka Expo is projected to have generated a nearly ¥37 billion surplus. Inflation, climate change and geopolitics remain challenges — along with what to do about the bears.
Visitors take pictures of Xiao Xiao and Lei Lei, Ueno Zoo’s two giant pandas. In December, it was announced that the animals, a symbol of friendship between China and Japan, would be returned to China in January. Relations between the two countries hit a low after Prime Minister Sanae Takaichi suggested in November that a naval blockade in the vicinity of Taiwan could constitute a “survival-threatening situation” for Japan.
| JOHAN BROOKS
A customer holds a bag of government stockpiled rice at a store in Matsudo, Chiba Prefecture, on July 3. Rice prices doubled in the past year, prompting then-Prime Minister Shigeru Ishiba’s government to release emergency reserves into the market and sideline conventional distribution channels.
| BLOOMBERG
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.