The present government of Japan, with an economic strategy – Abenomics – named after its prime minister, aims to use fiscal and monetary measures to boost growth and inflation, combined with structural reforms to raise productivity and increase participation in the workforce, especially by women. To date these measures have had only limited success, and the country is forecast to continue to experience low growth and very low inflation at best. Japan faces significant labour shortages and major demands for public spending on health and social care as a result of its rapidly ageing population and low fertility. It also faces challenges in the form of the new US administration, which has abandoned the Trans-Pacific Partnership and may shift towards protectionism, and regional tensions with China. One of the government’s key priorities is to maximise the use of existing human capital and to be a pioneer in the use of automation and in sustainability. It is seeking to encourage more international collaboration in research, higher visibility for its universities and greater student mobility.