Takaichi pursues state-led transformation amidst macroeconomic pressures

key takeaways

• The Takaichi government is preparing a supplemental budget that will not only provide relief from cost-of-living increases but will also include some early “strategic investments” in priority sectors.
• The latter measures will reflect the new government’s plans to use industrial policy to promote self-sufficiency and strategic autonomy.
• Inverting Abenomics, Takaichi’s growth strategy will shape macroeconomic policies, suggesting that it will seek greater fiscal flexibility despite pledges of “responsible” spending.