Japan seeks to initiate a new growth cycle through investments, with a focus on 17 key areas.
The goal of Japanese Prime Minister Sanae Takaichi is to use her first stimulus package to kickstart the economy and launch new growth strategies through investment. According to a document released by a group of experts responsible for developing a new economic growth strategy for Japan before next summer, the group suggested that the Prime Minister use this package to kickstart efforts to establish strong growth through "crisis management investment and growth investment." The expert group stated that the government should focus on investing in 17 areas that Takaichi believes are crucial for Japan's economic growth. These areas include semiconductors and artificial intelligence, shipbuilding, defense industries, and key minerals. Takaichi has signaled a shift towards a more expansionary fiscal policy and stated that Japan has only halfway to go in achieving stable inflation supported by wage growth. This indicates that she wants the Bank of Japan to proceed cautiously when gradually raising interest rates. She also emphasized her commitment to implementing a fiscal policy that is both responsible and expansionary.
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