Takaichi's Honeymoon Endures: Japan's PM Holds 75% Approval, But Economic and Diplomatic Tests Loom

Three months into her term, Japanese Prime Minister Sanae Takaichi’s government is maintaining a firm grip on public support. A new Nikkei/TV Tokyo survey released on December 22, 2025, pegs her cabinet's approval rating at a steady 75%, marking the third consecutive month in the 70% range since its formation.

This sustained popularity provides Takaichi with a strong mandate, one she'll need as her administration confronts a pivotal shift in economic policy and increasingly tense foreign relations. The high rating appears to reflect public appetite for her assertive stance on national security, a departure from the more cautious approaches of some predecessors.

The first major test lies at home. The Bank of Japan (BOJ) has embarked on a policy normalization path, with a recent rate hike pushing borrowing costs to a 30-year high. While the move has public backing—with 55% supporting it, according to the survey—it forces corporate Japan and households to rethink debt. Takaichi’s challenge, as she has outlined, will be to spur growth among small and medium-sized enterprises (SMEs) to combat inflation without stifling the economy.

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Externally, the administration's hawkish posture toward Taiwan, dubbed the “Takaichi shock” in some circles, continues to define its diplomatic agenda. This stance resonates with a domestic base wary of regional instability but is also the primary source of friction with Beijing. How Takaichi balances this popular hardline approach with the economic realities of Japan-China trade will be a defining feature of her premiership heading into 2026.

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Takaichi's high approval reflects a broader shift in Japanese public sentiment, which increasingly favors a more assertive national security posture amid regional uncertainty. However, this domestic consensus will be tested as the economic costs of friction with China become more apparent. For global investors, the key question is whether Takaichi can balance her popular hawkishness with the economic pragmatism Japan's export-oriented economy requires.