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The Japan Times
Takaichi sets target for nominal GDP of $6.8 trillion in 2040
Prime Minister Sanae Takaichi of Japan has established an ambitious target to grow the country's nominal GDP to $6.8 trillion by the fiscal year 2040. This plan includes a substantial focus on private-sector capital investment, which is expected to contribute significantly to overall economic growth. Takaichi aims to establish a paradigm shift from Japan's historic trend of underinvestment while ensuring fiscal discipline is maintained to prevent overspending. The government's growth strategy will set the agenda in achieving these goals over the next 14 years.
MonitorConfidence: MediumLong term horizon
Published 1 Jul 2026, 03:45 UTC1 min read
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Summary
TL;DR
- Takaichi targets nominal GDP of $6.8 trillion by 2040
- Plan includes ¥230 trillion in domestic private-sector investment
- Aims to reduce debt-to-GDP ratio over the coming years
- Focus on exceeding 1% real growth and 3% nominal growth
- Discussion held during Council on Economic and Fiscal Policy meeting
Interesting facts
- The target aligns with recent Cabinet Office estimates
- Focuses on reversing Japan's trend of economic underinvestment
- The meeting discussed the draft of the 'honebuto' policy