Japan to Target Stable Nominal GDP Growth of Over 3 Pct

Tokyo, June 30 (Jiji Press)–The Japanese government will aim to consistently achieve economic growth of more than 3 pct in nominal gross domestic product and more than 1 pct in real GDP at an early date, according to a draft outline. For the goal, the government intends to overhaul its economic and fiscal management as a medium- to long-term policy, which covers the period from fiscal 2027 to fiscal 2040, the draft of the government’s new Basic Policy on Economic and Fiscal Management and Reform showed. The government is set to discuss the draft at a meeting on Tuesday of the Council on Economic and Fiscal Policy. It hopes to adopt the new basic policy in July. According to the draft outline, the government will announce that strengthening Japan’s comprehensive national power is the mission of the administration of Prime Minister Sanae Takaichi. The draft calls for promoting a growth strategy featuring public-private investments exceeding 370 trillion yen in 17 strategic fields, including artificial intelligence and semiconductors, by fiscal 2040, as part of efforts to increase the country’s nominal GDP to 1,100 trillion yen. To make this possible, the draft outline calls for a shift in the government’s budget compilation policy to one suited to reinforcing the country’s growth potential and its nominal economic size. The government will create a new investment quota for public-private investments to make the country strong and affluent, allowing necessary funds to be requested without setting an upper limit. Investments in fields of particular importance for the country’s economic security will be managed separately under a special account after securing financial resources over multiple fiscal years. The government will manage the primary budget balance over multiple years, changing its stance from aiming to achieve a surplus on a single-year basis, according to the draft. END [Copyright The Jiji Press, Ltd.]