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.
