Source: https://asia.nikkei.com/politics/takaichi-s-new-economic-blueprint-for-japan-4-things-to-know and https://www.nomuraconnects.com/focused-thinking-posts/investing-for-a-strong-and-prosperous-japan/ Note: Figures for extra business investment and extra GDP during 2026-2040 are based on the favorable “Scenario 3” put out by the the Takaichi investment plan
Key Points:
Takaichi claims ¥370 trillion ($2.7 trillion) of government-directed investment will double real GDP growth from 0.7% per year in the last decade to 1.4% going through 2040
Claims “knock-on economic benefits” up to 20 times the amount of investment in sectors like AI, semiconductors, health, entertainment, wireless and food technology
Claims overall 8-fold expansion of GDP for every yen invested
Will companies kick in the money she proposes?
If they do, will that boost GDP as much as she says?
How realistic are her claims for the magnitude of knock-on benefits?
What Japan needs is not more company investment but smarter investment
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