Japan Unveils ¥370 Trillion Plan to Boost Economy and Yen Value

Japan is set to unveil a massive ¥370 trillion investment plan aimed at boosting its economy and the value of the yen. The government's roadmap, which was introduced in late June, focuses on strategic sectors such as AI, semiconductors, and gaming.

The plan's price tag has raised eyebrows among investors, who are skeptical about how much public money will be allocated to these industries. Prime Minister Sanae Takaichi backs the spending plan, but her wider budget ideas have sparked concerns.

Kiuchi, Japan's growth strategy minister, emphasizes that the government is committed to fiscal sustainability and transparency. He notes that Japanese fiscal policy is not as expansionary as others may think, with a focus on long-term stability rather than short-term gains.

The plan also marks a shift in how Japan measures its economy, moving away from an annual budget target to a target for government debt as a share of GDP. This change aims to prioritize sustainable growth over short-term spending.