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Nidec Accounting Fraud: The Pressure Culture That Built Japan’s Biggest Corporate Scandal in a Decade

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There’s a comic book on Nidec’s website — or there was, until recently — called “The Man Hotter Than the Sun.“ It chronicles the rise of Shigenobu Nagamori, who founded the world’s largest precision motor company in a shack in Kyoto in 1973 and built it into a global industrial giant supplying Apple, the automotive sector, and half the data centres on earth. Hard work. Relentless ambition. Numbers that never disappointed. It was a very Japanese success story, and it was also, investigators have now concluded, partly a fiction — one sustained for years by managers who inflated profits rather than face the man whose sun, apparently, could not be allowed to set.

What Is the Nidec Accounting Fraud — and How Big Is It?

The Nidec accounting fraud is Japan’s largest corporate accounting scandal in at least a decade. A third-party committee report released in March 2026 found that Nidec Corporation had committed accounting fraud totalling 166.2 billion yen — roughly $1.1 billion — as of 2023. That figure, staggering on its own, is likely the floor. The company has warned it may be forced to book an additional ¥250 billion, or $1.6 billion, in impairment charges as the full cost of the scandal is tallied, with third-party investigators saying they uncovered at least 1,000 separate instances of improper accounting across the group. Seoul Economic DailyBloomberg

The scandal first showed its face not in Kyoto, where Nidec is headquartered, but in Casalmaggiore, a small town in northern Italy’s Po Valley. It was the company’s Italian subsidiary, Nidec FIR International S.R.L., where possible lapses first surfaced in June 2025, forcing Nidec to delay filing its annual financial results. Within months, a Chinese subsidiary was implicated too, and then the scope widened further: investigators found misconduct at operations in Switzerland and across Nidec’s automotive inverter business. financialcontent

On October 28, 2025, the Tokyo Stock Exchange designated Nidec’s stock as a “security on special alert,” citing substantial need for improving the company’s internal management systems. The move sent shares tumbling by their daily 500 yen limit — a drop of roughly 19% in a single session. By the time the formal third-party report landed on February 27, 2026, Chairman Hiroshi Kobe and three other senior executives had resigned. Moody’s downgraded Nidec’s debt rating three levels into junk territory, and the stock was removed from the Nikkei 225 index. CEO Mitsuya Kishida bowed publicly at a press conference and said he would forfeit his salary until October. NIDEC CORPORATIONMy-cpe

The mechanics of the fraud were, in retrospect, classically mundane. Misconduct confirmed at Nidec Group bases included: avoidance of recognising valuation losses on obsolete raw materials and finished goods; improper avoidance of impairment losses based on sales plans with low probability of achievement; inflated inventory values; misreported customs declarations; government grants booked as revenue. Each individual manipulation was modest. Aggregated across dozens of subsidiaries over multiple years, they added up to a billion-dollar lie. NIDEC CORPORATION

How Did Corporate Culture Drive the Fraud?

This is where the story moves from accounting irregularity to structural pathology. The central finding of the independent investigation is not that Nagamori ordered the fraud — investigators found no evidence he personally directed specific manipulations. What they found was more insidious.

The committee blamed founder Shigenobu Nagamori for “excessive pressure to meet performance targets,” particularly profit targets, and found that many business units attempted to meet their goals using creative accounting. In plain terms: managers across Italy, China, and Switzerland were not cooking the books because they were corrupt. They were doing it because the alternative — telling Nagamori, a man who has written books about his rags-to-riches philosophy and whose image once adorned the company’s public website — that the numbers wouldn’t hit, was something the culture simply didn’t allow. MarketScreener

What caused the Nidec accounting fraud? The third-party investigation concluded that Nagamori’s excessive pressure on staff to meet profit targets created a corporate culture in which managers across multiple countries resorted to improper accounting rather than miss their numbers. Investigators documented more than 1,000 separate instances of misconduct spread across the group’s global subsidiaries.

This mechanism — what organisational theorists sometimes call “performance pressure fraud” — is not unique to Japan. But it finds particularly fertile ground in founder-dominated companies, where the founder’s authority has rarely been formally checked and where decades of success have calcified the idea that the numbers are always achievable if you push hard enough. Nagamori had, famously, sent regular messages to senior managers demanding better performance. As far back as September 2021, after handing over the CEO role, he was telling managers that the company faced its biggest-ever business crisis and that they needed to do more to boost performance and the share price. The message, delivered repeatedly across years, wasn’t lost on the people below him. Bloomberg

Oasis Management, the activist fund that holds approximately 6.7% of Nidec, described the problem bluntly in March 2026: “The problem at Nidec lies in a corporate culture that pressured employees into engaging in improper accounting practices for the sake of performance or share price; a lack of ethical judgment among management that effectively tolerated such improper accounting; the failure to establish appropriate checks and balances.” businesswire

What Are the Implications for Nidec and Japan Inc.?

The immediate picture for Nidec itself is grim. CEO Kishida has announced a plan to spend ¥130 billion over five years on measures to prevent recurrence and rebuild the governance system, including the suspension of the company’s once-aggressive acquisition strategy. Business acquisitions had been Nidec’s primary growth engine for three decades — an irony not lost on investors, since it was precisely that acquisition-driven expansion into Italy, China, and Switzerland that created the dispersed, difficult-to-audit subsidiaries where the fraud took root. The Japan Times

Nidec has also cancelled its year-end dividend for the fiscal year ending March 2026, with the company saying it “has no choice” given the investigation’s material impact on its financial closing for past fiscal years. The Securities and Exchange Surveillance Commission has reportedly begun its own probe, adding a regulatory dimension to what is already a reputational and financial catastrophe. NIDEC CORPORATION

The broader signal for Japanese markets is harder to read, but not easily dismissed. Japan’s corporate governance reform drive — accelerated by the Tokyo Stock Exchange’s 2023 push to force companies trading below book value to justify their capital allocation — was already testing the limits of how far founder-controlled companies would actually change. Nidec was, until recently, considered a model of what Japanese manufacturing could become: globally scaled, technically sophisticated, financially driven. The revelation that its financial sophistication was partly illusory lands badly at precisely the moment foreign investors have been warming to Japan’s equity story.

Academic research published in the Asia Pacific Journal of Management in 2025 found that the combination of foreign investor pressure for short-term gains and inadequately independent boards — particularly at companies with concentrated founder ownership — significantly elevates the risk of corporate misconduct in Japanese firms. Nidec fits the profile precisely. Springer

The Counterargument: Was Nagamori Singled Out Unfairly?

Not everyone is persuaded that Nagamori is the villain this narrative requires. Some analysts argue that to pin a systemic governance failure on one individual’s personality is to let the board, the auditors, and the company’s own internal compliance function off the hook entirely.

PwC, Nidec’s auditor, issued a disclaimer of opinion on the company’s fiscal year 2025 consolidated financial statements — an extraordinary step that signals the auditor could not obtain sufficient evidence to form a view. PwC pointed specifically to accounting practices that could have a “significant impact on consolidated financial statements” due to arbitrary adjustments in the timing of asset write-downs. That’s a significant failure of external oversight, and it raises questions about why red flags were not raised earlier in an audit relationship that spans years. mexc

There’s also a legitimate argument that the third-party committee report, while technically independent, was commissioned by Nidec itself — a structural limitation that critics of Japan’s third-party committee system have long flagged. The Japan Federation of Bar Associations guidelines that govern these panels were designed for transparency, but the panels’ independence is fundamentally constrained by the fact that the company in question controls the scope and, ultimately, bears the costs of the investigation. Whether the 1,000-plus instances of misconduct represent the full picture, or merely the portion the investigation was equipped to find, remains an open question.

Still, that caveat doesn’t fundamentally alter the central finding. A culture doesn’t become fraudulent by accident. Someone has to set the temperature.

A Reckoning That Was Always Coming

Nidec’s Culture Transformation Lab — the body launched on February 1, 2026, to “convey the voices of front-line employees directly to management” — has a name that reads less like a corporate initiative and more like an admission. If front-line voices needed a formal laboratory to be heard, the silence before it was built tells you everything about what the organisation had become.

The Nidec accounting fraud is, at one level, a story about a single company and a single founder’s shadow falling too far across the boardroom. At another level, it’s a test case for whether Japan’s governance reforms have teeth. The TSE’s special alert mechanism worked; Moody’s downgrade worked; the independent investigation worked. What didn’t work, for years, was the ordinary internal machinery that is supposed to catch this kind of thing before it reaches $1.1 billion.

That machinery failed because the people operating it were too afraid to make it fail in the other direction.

The comic book about the man hotter than the sun has been quietly removed from Nidec’s website. What’s left is a company trying to figure out how to build something that doesn’t burn everything around it.

Analysis

AI Customer Service in 2026: What’s Working, What’s Failing, and What to Buy

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Almost every support team is now using AI. Far fewer customers say it solves their problem. That gap is the real story of AI customer service in 2026, and it decides which deployments pay off.

Key Takeaways

  • Adoption doubled fast: Salesforce’s May 2026 survey of 3,075 service professionals found AI agent adoption rose from 39% to 66% in a year. getmacha
  • Results lag: Only 24% of consumers said their last AI service interaction was fully resolved by AI alone, per an Ada and NewtonX study. getmacha
  • Value shows up quickly: 70% of organizations deploying agents saw measurable value within 60 days. agilebrandguide
  • Data is the blocker: 72% of service operations professionals call data readiness a major obstacle. agilebrandguide
  • Forecast: Gartner expects agentic AI to autonomously resolve 80% of common customer service issues by 2029. raftlabs

What “AI Customer Service” Means Now

The first wave was scripted chatbots. The current wave is agentic AI: systems that interpret open-ended intent, read live customer data and resolve issues across connected systems without following a script. cygnet

The difference is action. A chatbot answers “where’s my order?” An agent checks the order system, issues the refund and updates the CRM.

The Adoption Numbers

MetricFigureSource
Service orgs using AI agents66% (up from 39%)Salesforce, May 2026
Orgs using at least one form of AI85%Salesforce
Teams at mature AI deployment10%Intercom, Jan 2026
Consumers fully resolved by AI alone24%Ada/NewtonX, Mar 2026
Agent use across customer-facing and internal work77%Salesforce

One caution applies to the headline adoption figures: Salesforce sells AI agents for service, so it has a commercial reason to publish momentum numbers. The Salesforce data is useful, but read it as a vendor’s view. Salesforce’s own service product page promotes the AI Agents Edition report, if you want to see how it frames the findings. getmacha

The Trust Gap

The most important number in this market isn’t adoption. It’s the 24% full-resolution rate. Companies are deploying AI faster than customers are being helped by it.

One compilation of 2026 statistics adds that 64% of customers wish companies would stop using AI in customer service, according to a Lorikeet survey. That’s a single-vendor figure, so use it as a directional signal rather than a settled fact. It still matches what most people have experienced: the bot that can’t escalate, the loop that never reaches a human. coworker

Where AI service typically fails:

  • No escalation path: The customer can’t reach a person.
  • Stale or fragmented data: The agent can’t see order history or account status.
  • Overreach: The agent attempts complex or emotional cases it shouldn’t.
  • Hidden AI: Customers feel tricked when they don’t know it’s a bot.

Where It Works

AI customer service performs best on narrow, high-volume, low-emotion requests: order status, password resets, returns and refunds, appointment changes and billing questions. 95% of service professionals say they trust AI for simple requests. Trust drops sharply as complexity rises. agilebrandguide

The ROI Question

Return figures vary widely. One 2026 compilation puts average ROI at $3.50 for every $1 spent, with leading organizations reaching 8x. Treat those as ceilings, not promises. The same compilation also notes 62% of service leaders worry about unpredictable AI costs. Usage-based pricing can erase savings if volume spikes. ringlyringly

A practical ROI model needs four inputs:

  1. Containment rate: Share of contacts fully resolved without a human
  2. Cost per contact: Human-handled versus AI-handled
  3. Quality impact: CSAT and repeat-contact rate, not just deflection
  4. Total AI cost: Licenses, usage fees, integration and ongoing tuning

Deflection that frustrates customers is a hidden cost. If containment rises while CSAT falls, you’re borrowing against retention.

Platform Landscape

Enterprise buyers commonly compare these platforms: Salesforce Agentforce, IBM watsonx Assistant, Microsoft Copilot Studio, Cognigy and Kore.ai. Each has strengths, so match the platform to your stack: cygnet

If you already run…Consider first
Salesforce CRMAgentforce
Microsoft 365 and DynamicsCopilot Studio
Heavy voice and contact-center volumeCognigy
Multi-function (support, IT, HR) automationKore.ai
Regulated or hybrid environmentsIBM watsonx Assistant

This table is a starting framework, not a ranking. Integration depth with your CRM and ticketing systems usually matters more than headline features.

What the Workforce Impact Looks Like

Estimates of job impact are speculative and vary by source. One forecast says Gartner predicts organizations will replace 20% to 30% of service agents with generative AI by 2026. What’s more certain is that roles change: simpler tickets disappear, and humans handle harder, more emotional cases. That requires different training and often different pay structures. raftlabs

A Buyer’s Checklist

Before signing a contract, answer these:

  • Data readiness: Is customer data clean, unified and accessible to the agent?
  • Escalation design: Can customers reach a human in one step?
  • Transparency: Do customers know they’re talking to AI?
  • Governance: Who audits agent decisions and refunds?
  • Metrics: Are you tracking resolution and CSAT, not only deflection?
  • Pricing: What happens to cost when volume doubles?

What’s Next

Salesforce’s research frames the next phase around governance and workforce roles, recommending clear roles for AI architects and data specialists, plus transparent interactions with clear escalation to humans. That advice is sensible regardless of vendor. agilebrandguide

The Bottom Line

AI customer service works when it’s narrow, well-fed with data and honest about its limits. It fails when companies treat it as a headcount-cutting shortcut. With adoption now past 60%, competitive advantage will come less from having AI and more from deploying it without losing customer trust. Start with simple, high-volume requests, measure resolution rather than deflection, and keep a human exit visible.

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Analysis

Pakistan’s Current Account Deficit Narrows Sharply to $98 Million in August 2026

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Karachi — Pakistan’s external balance demonstrated significant resilience as the monthly Current Account Deficit (CAD) contracted sharply to $98 million in August 2026, down 78% month-on-month from $445 million recorded in July 2026. Official data released by the State Bank of Pakistan (SBP) highlights that strong worker remittance inflows and steady export growth offset a surging import bill, providing crucial relief to the nation’s balance of payments.

Compared to the same period last year, the monthly shortfall narrowed by 69.7.3% from the $324 million deficit registered in August 2025. Cumulatively, during the first two months of the current fiscal year (2MFY27), Pakistan’s current account deficit stood at $543 million, marking a 36.3% reduction compared to the $853 million deficit incurred in 2MFY26, according to official economic indicators compiled by Dawn News Financial Analysis.

Key Drivers Behind August 2026 External Account Performance

1. Robust Remittance Inflows as the Core Anchor

Overseas Pakistani workers remitted $3.656 billion during August 2026, registering a 16.5% year-on-year (YoY) increase compared to $3.14 billion in August 2025 and a 0.7% month-on-month growth over July’s $3.63 billion.

  • Saudi Arabia: Remained the largest contributor, accounting for $873.5 million (+19% YoY).
  • United Arab Emirates (UAE): Inflows rose to $749.8 million (+17% YoY).
  • United Kingdom & EU: Remittances from the UK totaled $563.7 million (+22% YoY), while European Union corridors dispatched $496 million (+7% MoM).
  • United States: Inflows reached $308.9 million (+16% YoY).

Cumulative remittance inflows for 2MFY27 reached $7.29 billion, representing a 14.7% YoY increase from $6.36 billion recorded during the same period in FY26, as reported by Express Tribune Business.

2. Trade Balance and Import-Export Dynamics

  • Exports of Goods & Services: Reached $3.33 billion in August 2026, reflecting a 5.0% YoY rise compared to $3.17 billion in August 2025.
  • Imports of Goods & Services: Expanded to $6.64 billion, an increase of 8.0% YoY from $6.15 billion in August 2025, driven largely by essential industrial raw materials and energy imports required to support ongoing economic revival.

Macroeconomic Comparison Matrix: Current Account Breakdown

The table below illustrates the shift across key trade and primary income metrics for Pakistan’s balance of payments, as monitored by Trading Economics – Pakistan Balance of Payments:

Economic MetricAugust 2026July 2026August 20252MFY27 Cumulative2MFY26 CumulativeYoY Shift (%)
Current Account Balance-$98M-$445M-$324M-$543M-$853M-36.3%
Worker Remittances$3.656B$3.630B$3.140B$7.286B$6.353B+14.7%
Total Exports (Goods & Services)$3.330B$3.180B$3.170B$6.510B$6.120B+6.37%
Total Imports (Goods & Services)$6.640B$6.520B$6.150B$13.160B$12.380B+6.30%
Foreign Exchange Reserves (Excl. CRR)$17.280B$16.900B$14.520B$17.280B$14.520B+19.0%
Net Foreign Direct Investment (FDI)$315.9M$185.2M$175.1M$501.1M$342.0M+46.5%

Exchange Rate Competitiveness & FDI Momentum

REER and NEER Movements

Alongside the current account update, SBP data revealed that Pakistan’s Real Effective Exchange Rate (REER) index recorded a minor increase of 0.02% MoM, reaching 107.92 in August 2026 compared to 107.89 in July 2026.

Meanwhile, the Nominal Effective Exchange Rate (NEER) index depreciated by 0.79% MoM to 38.02 in August from 38.32 in July. While a REER above 100 indicates mild export price pressure, analysts cited by Reuters Global Markets note that exchange rate stability has helped maintain import predictability without severely penalizing key manufacturing sectors.

Surge in Foreign Direct Investment

Net Foreign Direct Investment (FDI) inflows saw a sharp increase, totaling $315.9 million in August 2026—an 80.4% YoY expansion compared to $175.1 million in August 2025. Key capital inflows targeted energy, telecommunications, and infrastructure projects, underscoring rising investor confidence supported by ongoing fiscal discipline and structural economic reforms monitored by Bloomberg Markets.

Macroeconomic Implications & Policy Outlook

  1. Foreign Reserve Buffer Expansion: Total SBP-held foreign exchange reserves (excluding CRR/SCRR) expanded to $17.28 billion, an increase of 19% YoY. This build-up strengthens Pakistan’s external liquidity buffer, providing over 2.6 months of import cover.
  2. Impact on Monetary Policy: The narrowing CAD and stable exchange rate dynamics offer the State Bank of Pakistan headroom to maintain a measured monetary easing cycle, encouraging domestic capital formation without reigniting demand-pull inflation.
  3. IMF Program Benchmark Compliance: Lower current account vulnerabilities position Pakistan favorably for ongoing review under international financial assistance programs, ensuring sustained access to multilateral funding channels.
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Analysis

Japan Eyes 3.5% Defense Spending: What It Means for Bonds, Stocks, and the BOJ

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Key Takeaways

  • Japan is considering nearly doubling its midterm defense spending target to 3.5% of GDP — up from current levels of roughly 1.9% — under pressure from the Trump administration to match commitments made by NATO members and South Korea.
  • A 3.5% target would amount to roughly ¥24 trillion annually, based on current GDP forecasts, more than double today’s spending level; a lower 3.0% target is also reportedly under consideration.
  • Japanese 10-year government bond yields have already climbed to their highest levels since 1996, reflecting investor concern about how Japan — which carries the world’s highest debt-to-GDP ratio among advanced economies at nearly 240% — would finance the increase.
  • Defense contractor stocks on the Tokyo Stock Exchange have risen in anticipation of the spending shift, even as broader market strategists warn the announcement could “send a shockwave through financial markets” concerned about PM Sanae Takaichi’s overall fiscal trajectory.
  • A new five-year defense spending plan is expected by the end of 2026, meaning markets will be watching for confirmation of the final target — 3.0% or 3.5% — in the coming months.

Japan’s defense budget has broken its own record for 14 consecutive years, but the shift now under consideration in Tokyo represents something categorically different: a near-doubling of the country’s spending target, driven not by regional threat assessments alone but by direct pressure from Washington. For global economy watchers, the implications reach well beyond defense contractors into Japanese government bond markets, the yen, and the Bank of Japan’s already delicate policy path.

The New Target Under Consideration

According to people familiar with the matter, Japan’s government — under Prime Minister Sanae Takaichi — is weighing a new midterm defense spending target of 3.5% of GDP, aligning with commitments already made by NATO members and, more strikingly, by South Korea, which has pledged to reach that level over 10 years. Japanese defense officials have reportedly already signaled willingness to sharply increase spending in meetings with their US counterparts, though a lower 3.0% target remains an alternative under discussion.

To put the scale of this shift in context: until 2022, Japan maintained an informal spending ceiling around just 1% of GDP — a figure rooted in the country’s post-war pacifist constitutional framework. Takaichi has already accelerated Japan toward the more modest 2% target two years ahead of schedule, reaching nearly that level in the fiscal year ended March 2026. A jump to 3.5% would represent roughly ¥24 trillion in annual spending based on current GDP projections — more than double the current outlay, and a figure that dwarfs the roughly ¥9-10 trillion currently being requested for the next fiscal year’s defense budget alone.

Why Now: US Pressure and the NATO Benchmark

The push traces directly to the Trump administration’s broader effort to have allies shoulder more of their own defense costs and reduce reliance on the American military umbrella. The 3.5%-of-GDP figure has effectively become a global benchmark for US allies since NATO members adopted it, with Japan’s neighbors South Korea and Taiwan reportedly making similar pledges. For Tokyo specifically, the pressure carries added urgency given ongoing regional security concerns and the broader reassessment of US alliance commitments happening globally in 2026.

Notably, even Takaichi’s more modest current-year progress — nearing 2% of GDP two years ahead of schedule — already drew praise in Washington, but analysts at the Center for Strategic and International Studies have noted this success is likely to raise expectations for even further increases in Japan’s next defense buildup program, expected to be finalized by the end of 2026.

The Fiscal Math Problem

Japan’s fiscal starting position makes this proposal considerably more fraught than a simple budget-line adjustment. The country already carries the world’s highest debt-to-GDP ratio among advanced economies, at nearly 240% — meaning any large new spending commitment raises immediate questions about financing, whether through new bond issuance, tax increases, or some combination. Takaichi has publicly pledged to pursue a “responsible, proactive fiscal policy,” but bond markets are already signaling skepticism: Japanese 10-year government bond yields have climbed to their highest levels since 1996, reflecting growing investor concern about debt sustainability even before any formal 3.5% commitment is finalized.

Bond Market and Equity Reaction

The market response so far has bifurcated in a telling way. On one hand, major Japanese defense companies have risen on the Tokyo Stock Exchange as investors price in the prospect of substantially higher government contracts. On the other, the broader bond market reaction has been notably more cautious — rising JGB yields reflect concern that large new debt issuance to fund the buildup could strain Japan’s already stretched fiscal position, with potential knock-on effects for borrowing costs across the economy.

Spending Target Comparison

ScenarioTarget (% of GDP)Est. Annual SpendingStatus
Pre-2022 informal ceiling~1.0%N/AHistorical baseline
Current target (achieved early)~2.0%~¥9-10 trillionReached FY2026, 2 years ahead of schedule
Under consideration (lower option)3.0%N/AReportedly discussed
Under consideration (NATO-aligned option)3.5%~¥24 trillionReportedly discussed; matches South Korea’s 10-year pledge

Why This Matters for the BOJ and Global Markets

A defense-spending shift of this magnitude complicates an already difficult picture for the Bank of Japan, which has been gradually moving away from decades of ultra-loose monetary policy even as it monitors the same Middle East-driven inflation pressures affecting central banks globally. Rising JGB yields tied to defense-spending concerns could interact with — and potentially amplify — the BOJ’s separate rate-hike considerations tied to domestic inflation, creating a more complex policy balancing act than either factor would present alone.

There’s also a broader global bond-market angle: some strategists have pointed to Japan’s rising rates as a factor behind a potential unwinding of the long-popular yen carry trade, in which investors borrow cheaply in Japan to invest in higher-yielding assets elsewhere. As Japanese yields climb — whether from defense spending, BOJ policy, or both — that trade becomes progressively less attractive, a dynamic some analysts have linked to recent volatility in global government bond markets more broadly, including the US Treasury market’s own yield surge this same week.

Frequently Asked Questions

Why is Japan considering raising defense spending to 3.5% of GDP?

The shift is driven primarily by pressure from the Trump administration for US allies to spend more on their own defense, aligning with commitments already made by NATO members and Japan’s neighbor South Korea, which pledged to reach 3.5% of GDP over 10 years.

How would Japan pay for a defense spending increase to 3.5% of GDP?

This remains unresolved and is a major market concern — Japan already carries the world’s highest debt-to-GDP ratio among advanced economies at nearly 240%, and rising Japanese government bond yields suggest investors are pricing in financing concerns ahead of any formal commitment.

When will Japan finalize its new defense spending target?

A new five-year defense spending plan is expected to be released by the end of 2026, which should clarify whether Japan settles on the 3.0% or 3.5% of GDP target currently under consideration.

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