With the dust settling after the Japanese general elections, HSBC economists Jun Takazawa and Frederic Neumann maintain a constructive view of the Japanese economy, expecting growth to surpass potential levels in 2025 and 2026. As living costs rise, supporting the real economy is a key and central topic of discussion among candidates, laying the groundwork for additional cyclical support measures. Many variables are still changing, especially the actual implementation of policies, which may differ from what was said during the election period. The long-term structural economic policies of the previous government may continue. Additional stimulus measures could boost spending, supporting the idea of gradual interest rate hikes by the Bank of Japan.