Public-private investment of JPY370trn by FY2040 under the growth strategy, a report says

Research evidence excerpt

Public-private investment of JPY370trn by FY2040 under the growth strategy, a report says

Global Markets Research

19 June 2026Fiscal Insight

Rates - Japan

Research AnalystsPublic-private investment of JPY370trn by FY2040

Fiscal Policyunder the growth strategy, a report says

Masaki Kuwahara - NSC

Annual public-private investment is 1.8 times that under the GX policy; masaki.kuwahara@nomura.com

attention is on the amount of public support and its funding sources. +81 3 6703 3876

JPY370trn in public-private investment by FY2040; annual investment is 1.8 times

that under the GX policy

NHK reported on 18 June that the Japan Growth Strategy Council is making

arrangements to present a plan in which the scale of expected public-private investment in

17 strategic fields through FY2040 will total around JPY370trn. The report did not indicate

how much of the JPY370trn in public-private investment would be government spending,

or what the funding source would be.

For comparison, looking back at the government’s Green Transformation (GX) policy

launched in 2023 (Fig.1), the required public-private investment over 10 years was set at

JPY150trn. To support this, the government planned to issue JPY20trn of GX economy

transition bonds over the same 10-year period and provide upfront investment support. On

an annual basis, this translates to JPY15trn in public-private investment and JPY2trn in

support through GX economy transition bonds.

Regarding the new growth strategy, if public-private investment is JPY370trn over the 14

years from FY2027 through FY2040, that would represent around JPY26trn per year, or

about 1.8 times the annual public-private investment assumed under the GX policy. If

annual public support also increases by a factor of 1.8, the amount of public support would