Details emerge on the creation of a framework for investments in "a strong and prosperous Japan"

Research evidence excerpt

Details emerge on the creation of a framework for investments in "a strong and prosperous Japan"

Global Markets Research

Japan economic perspective 25 June 2026

EQUITY: JAPAN STRATEGY

Details emerge on the creation of a framework for Research Analysts

investments in “a strong and prosperous Japan” Macro strategy Kohei Okazaki - NSC

No clarity yet on funding for bridging bond redemptions; uncertainty over kohei.okazaki@nomura.com

the country’s fiscal picture may persist +81 3 6703 1255

• A new “strong and prosperous Japan” investment framework will be created to

promote investment in 17 selected strategic fields

• The estimated boost to GDP growth associated with the promotion of

investment looks somewhat understated

• No details have come to light regarding deliberations over how the redemptions

of bridging bonds will be funded

Drafting of the Growth Strategy and Basic Policy heading into the home stretch

The 8th meeting of the Council on Economic and Fiscal Policy and the 5th meeting of the

Council for Japan's Growth Strategy were held on 24 June. Following those meetings, we

now have: (1) details on investment promotion policies for 17 selected strategic sectors of

the economy; (2) details on eight cross-cutting policy issues; (3) information on the

government’s “Regional Future Strategy”; and (4) data on the government’s longer-term

outlook for GDP and the fiscal balance updated to reflect these initiatives. The Council on

Economic and Fiscal Policy is scheduled to convene again on 25 June for its 9th meeting,

at which the items to be presented include (A) the overview of the fundamental overhaul

of the government’s approach to budget formulation, and (B) the draft of the government’s

Basic Policy on Economic and Fiscal Management and Reform (“Basic Policy”).