TOKYO — Japan is setting its sights on a sweeping economic growth plan that would mobilize approximately $2.3 trillion in combined government and private investment across 17 key industries by the year 2040, according to a report published Friday by the Nikkei business newspaper.
The initiative, valued at 370 trillion yen, is tied to Prime Minister Sanae Takaichi’s emerging growth strategy and is expected to be formally announced as soon as next week. Priority sectors under the plan include artificial intelligence, semiconductor chips, and space development, the Nikkei reported. The newspaper did not identify a source for the information.
The strategy reflects Takaichi’s approach of using government expenditures as a catalyst to draw in greater spending from the private sector. Reuters attempted to reach the Prime Minister’s Office for comment on Saturday, but no one was available outside of normal business hours.
As part of the broader effort, officials are weighing the creation of a long-term budget structure designed to provide steady funding for investments considered vital to the country’s economic security. Some of those investments could be financed through what are known as bridging bonds.
Bridging bonds are short-term financial instruments used to address temporary funding gaps. They are backed by guarantees on specific repayment sources, which allows the Japanese government — already carrying a heavy debt load — to maintain that it remains committed to fiscal responsibility even while increasing overall spending.
(Exchange rate: $1 = 161.28 yen at time of reporting)
