Japan is set to unveil an ambitious growth strategy targeting 370 trillion yen (US$2.3 trillion) in combined public and private investment by 2040, with a strong focus on artificial intelligence, semiconductors and space development.
According to the Nikkei, Prime Minister Sanae Takaichi is expected to announce the plan as early as next week as part of efforts to drive long-term economic growth and strengthen the country’s strategic industries.
The investment programme will channel funding into 17 key sectors deemed critical to Japan’s future competitiveness and economic security, while encouraging greater private-sector participation through government-led initiatives.
The government is also considering a multi-year budget framework to provide stable funding for priority investments, with some projects potentially financed through bridging bonds.
Bridging bonds are designed to meet temporary funding needs and come with designated repayment mechanisms, allowing Japan to boost spending while maintaining fiscal discipline despite its heavy debt burden.
The move underscores Japan’s push to secure leadership in emerging technologies and reduce reliance on foreign supply chains amid intensifying global competition.
