Growth Strategy Council shows Takaichi’s vision taking shape

KEY TAKEAWAYS

• The Takaichi government’s growth strategy is increasingly focused on physical AI – boosted by the defense sector – as the key to its broader ambitions for Japan’s economy.
• The government also appears increasingly focused on encouraging start-up activity rather than building national champions.
• The Growth Strategy Council (GSC) is exploring new frameworks for fiscal policy that will facilitate the government’s “strategic investments,” though the process of rolling out a new budgetary framework could be contentious.