Japan’s Prime Minister Sanae Takaichi has outlined a new growth strategy aimed at setting a target of approximately $2.3 trillion in combined public and private investment by 2040 across 17 strategic sectors, according to the Nikkei on Friday.
The initiative, expected to be unveiled next week, will focus on key areas such as AI, chips, and space development, with Takaichi aiming to leverage government spending to stimulate private-sector investment. The business daily did not cite a specific source for this information.
A request by Reuters to the Prime Minister’s Office for comment outside of business hours was unsuccessful.
The government is considering implementing a multi-year budget framework to ensure stable funding for investments deemed crucial to economic security, some of which may be financed through bridging bonds. These bonds are used to cover temporary funding needs and are issued with guarantees on specific means of redemption, allowing the heavily indebted government to argue that it remains mindful of fiscal discipline while increasing spending.