It is only in the far away future that Japan’s situation will soar.
Take a look at this scene and the condition it’s in. This is the climate of the situation, but more specifically the business climate. This word is really only used to talk about the state of business and economic stuff.
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.