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

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, according to the Nikkei, Report informs via Reuters.

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.

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)