Japan to target $2.3 trillion public-private investment b…

Japan plans to target approximately $2.3 trillion in public and private investment by 2040, focusing on 17 key sectors such as AI, semiconductor manufacturing, and space exploration, according to a Nikkei report. Prime Minister Sanae Takaichi's growth strategy aims to leverage government spending to stimulate private investment. The initiative, valued at 370 trillion yen, is expected to be announced soon, with discussions on a multi-year budget framework to secure funding. This funding may include bridging bonds, which allow for temporary financial needs while maintaining fiscal discipline.

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Japan's Prime Minister Sanae Takaichi addresses a press conference at the Prime Minister's Office in Tokyo

Japan's Prime Minister Sanae Takaichi addresses a press conference at the Prime Minister's Office in Tokyo, Japan, April 15 2026. PHILIP FONG/Pool via REUTERS/File Photo Purchase Licensing Rights, opens new tab

TOKYO, June 20 (Reuters) - Japan plans to set a target of about $2.3 trillion in combined public and private investment by 2040 across ‌17 strategic sectors as part of Prime Minister Sanae Takaichi's new growth strategy, the Nikkei reported on Friday.

The 370 trillion yen investment initiative, to be unveiled as early as ⁠next week, will focus on areas such as AI, chips and space development, as Takaichi seeks to use government spending to spur private-sector investment, the business daily said, without citing a source for the information.

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A call by Reuters to the Prime Minister's Office on Saturday to seek ‌comment ⁠went unanswered outside business hours.

The government is considering creating a multi-year budget framework to ensure stable funding for investments deemed critical to economic security, some of ⁠which may be financed through bridging bonds.

Bridging bonds are used to cover temporary funding needs and are issued ⁠with guarantees on specific means to pay for redemption, allowing the heavily indebted government ⁠to argue that it is mindful of fiscal discipline even as it boosts spending.

($1 = 161.2800 yen)

Reporting by Makiko Yamazaki; Editing by William Mallard

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Japan to target $2.3 trillion public-private investment by 2040, Nikkei reports

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