Prime Minister Sanae Takaichi set a target for growing Japan¡¯s economy to a value of $6.8 trillion in nominal gross domestic product, with about a fifth of the total in domestic private-sector capital investment, by the fiscal year starting in April 2040 as she champions her vision for a strong economy.
¡°Covering the period through fiscal 2040, the plan aims to achieve ?230 trillion in domestic private-sector capital investment and a GDP approaching ?1,100 trillion ($6.8 trillion) by FY2040, while steadily reducing the debt-to-GDP ratio,¡± she said during a Council on Economic and Fiscal Policy meeting held on Tuesday.
The projections are in line with estimates the Cabinet Office tallied last week based on the premise that the government¡¯s growth strategy is successfully implemented over the next 14 years.
The meeting was convened to discuss the draft of the so-called ¡°honebuto¡± policy, which sets the economic agenda for the Japanese government in the coming year. The policy is expected to be adopted around mid-July.
¡°We will also strive to establish ¡ª and further raise ¡ª economic growth exceeding 1% in real terms and 3% in nominal terms as early as possible,¡± Takaichi added.
Takaichi is seeking to break away from what she refers to as ¡°Japan¡¯s long-standing trend of underinvestment,¡± while also convincing markets that the government won¡¯t be overspending.
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