Japan’s Economic Strategy Aims to Strengthen Japanese Yen

In 2025, the Japanese yen has remained sensitive to economic policy signals and growth expectations. Against the U.S. dollar and regional currencies such as the Philippine peso, exchange rates have reflected market views on Japan’s economic outlook and long-term growth plans. 

Take a closer look at how these movements affect remittances in our earlier article, “JPY to PHP Exchange Rate Trends of 2025” which break down rate changes and what they mean for sending money home. 

Strategy to strengthen the Japanese economy 

Japan’s government has outlined a strategy aimed at strengthening the economy through strategic fiscal expansion and targeted investment. According to multiple Japanese news reports, the plan focuses on directing public and private investment into 17 strategic sectors considered important for long-term growth. 

These sectors include areas such as artificial intelligence, shipbuilding, defense, semiconductors and telecommunications. The approach is designed to improve productivity, support innovation and encourage private-sector investment alongside government spending. 

Rather than short-term stimulus alone, the strategy emphasizes building a more resilient economic structure by concentrating resources in fields expected to drive future growth. Road maps are being developed to guide investment and coordination across these priority areas, with implementation expected to progress through 2026. 

How economic policy can influence the Japanese yen

Economic expansion policies can affect the value of the yen in several ways: 

• Investment-led growth: Increased investment in strategic industries can improve productivity and earnings, which may support confidence in the Japanese economy over time. 
• Fiscal spending signals: Large-scale government spending can influence expectations around inflation, interest rates and future economic performance. 
• Market confidence: Clear policy direction and long-term planning can shape how global markets view Japan’s growth prospects, which in turn can influence currency demand. 

Photo credit: Financial Mirror

While fiscal expansion does not automatically lead to a stronger yen, sustained growth and stable economic conditions can provide longer-term support for the currency. 

What this means for people sending money home

For people sending money from Japan, exchange rate movements matter. A stronger yen generally means more value when converting JPY to other currencies, including PHP. Even small shifts in the rate can make a noticeable difference for regular remittances. 

As Japan’s growth strategy develops through 2025 and into 2026, remittance senders may want to: 

• Monitor exchange rate trends regularly
• Check rates before sending money
• Time transfers when the yen shows strength, when possible. 

Staying informed helps ensure more of your hard-earned money reaches your loved ones. 

Japan’s economic strategy, built around targeted investment and fiscal expansion in strategic sectors, signals a focus on long-term growth and structural resilience. As these policies unfold, they may continue to influence confidence in the Japanese economy and movements in the yen. 

By sending through Smiles Mobile Remittance, you can enjoy everyday great rates, low fees, fast transactions, and even track live exchange rates anytime on our exchange rate page to help decide the best time to send money home.