Japan’s government has drafted an economic blueprint that sets a goal of achieving more than 1% annual real growth and 3% annual nominal growth by 2040. According to Jin10, the targets would be more than double Japan’s average growth rate over the past five years and rank among Tokyo’s most ambitious economic objectives in decades.
The draft plan also proposes that combined public- and private-sector investment would exceed 370 trillion yen by fiscal 2040. It sets a private-sector annual capital expenditure target of about 230 trillion yen, while GDP is expected to reach nearly 1,100 trillion yen.
The blueprint reflects Prime Minister Sanae Takaichi’s push to revive the economy through strategic public-private cooperation and to direct resources toward industries the government views as critical to Japan’s long-term competitiveness.
The government also urged the Bank of Japan to maintain interest-rate policies supportive of economic growth. The draft indicates a preference for keeping financing costs low and points to potential policy friction with the central bank, which has been cautiously and gradually exiting an ultra-loose monetary policy environment.
Japan Drafts Economic Blueprint Targeting Over 1% Real Growth by 2040
2026-06-29 11:43:27
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