Kanda says Japan's share of Asia-Pacific GDP has fallen from over 50% in 2000 to about 10% in 2025
Yen weakness ultimately reflects national strength, structural labor reform urgent, he adds
![President Lee Jae Myung meets with Masato Kanda, president of the Asian Development Bank, at Cheong Wa Dae on Monday, on the sidelines of the Korea-Central Asia Summit. [Cheong Wa Dae/Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/09/17/rcv.YNA.20260914.PYH2026091411860001300_P1.jpg)
Masato Kanda, president of the Asian Development Bank, has urged Japan to undertake sweeping structural reforms — including an overhaul of its labor market — warning that the country's economic standing has deteriorated sharply.
Speaking at the Yomiuri International Economic Forum in Tokyo on Wednesday, Kanda said "nobody thinks of Japan as a superpower anymore" and called on the country to raise productivity and accelerate industrial renewal, the Yomiuri Shimbun reported.
Kanda, a Japanese national, said Japan's share of total Asia-Pacific GDP had fallen from more than 50 percent in 2000 to around 10 percent in 2025, while China's share had grown to nearly 50 percent and India had risen to a comparable level.
He also pointed to growing uncertainty in the global economy stemming from instability in the Middle East and the rapid advance of AI, stressing the importance of resolving such challenges through international cooperation.
According to ADB projections, inflation in emerging Asia-Pacific economies is expected to rise 1.3 percentage points in 2026 from the previous year, while GDP growth is forecast to slow by 0.6 percentage points.
On the persistent weakness of the yen, Kanda said exchange rates "ultimately reflect national strength" over the medium to long term, adding that improving competitiveness is essential to protecting Japan's external purchasing power and that fundamental structural reforms — particularly in the labor market — are urgently needed to achieve that.
mokiya@heraldcorp.com
