This document summarizes recent economic trends and policy changes in Japan and discusses their impact on the information and communications technology sector. It notes that the Japanese government has implemented fiscal stimulus and monetary easing policies under Prime Minister Shinzo Abe to end deflation and promote growth. Telecom carriers are moving to provide cloud services as major tech companies operate their own data centers. Electronics makers are struggling with losses but pursuing new strategies around automotive, appliances, and transforming company culture. The future may bring regulatory reforms and challenges for tech vendors to create new services and business models.