Japan seeks to open a new growth cycle through investment; Takashi City clarifies 17 key areas

Jin10 Data, November 10th: Japanese Prime Minister Fumio Kishida aims to kickstart the economy with his first stimulus package and initiate a new growth strategy through investment. According to a document released after the first meeting of an expert panel responsible for developing Japan’s new economic growth strategy by next summer, the panel recommends that the Prime Minister use this plan to launch efforts to establish strong growth through “crisis management investments and growth investments.” The expert panel stated that the government should focus on investing in 17 sectors that Kishida considers vital to Japan’s economic growth. These sectors include semiconductors and artificial intelligence, shipbuilding, the defense industry, and critical minerals. Kishida has signaled a shift toward more expansionary fiscal policies and has indicated that Japan is only halfway to achieving stable inflation supported by wage growth. This suggests that he wants the Bank of Japan to remain cautious as it gradually raises interest rates. He also emphasized his commitment to implementing both responsible and expansionary fiscal policies.