Japan Macro Watch "Fiscal ambitions constrained by market confidence" Kurihara

研报英文原文证据摘录

Japan Macro Watch "Fiscal ambitions constrained by market confidence" Kurihara

Fiscal update: Bold vision, cautious communication

This week, at a joint meeting of the Council on Economic and Fiscal Policy and the Japan Gov clarified investment amount for

Growth Strategy Council, the government unveiled a plan to mobilize more than ¥370 each area, which was taken

trillion in public and private investment across 17 strategic sectors by 2040. The breadth positively by equity market

of the targeted sectors had already given the impression of a somewhat all-

encompassing approach, but the announcement provided greater clarity regarding the

amount of investment allocated to each area. Investment targets include ¥10.5 trillion

for Physical AI, ¥24.5 trillion for the gaming industry, and ¥32.7 trillion for data centers

and battery-related initiatives. These figures were compiled based on interviews with

major corporations and industry groups regarding their planned and prospective

investments, under the assumption of government policy support and guidance. The

announcement was well received by equity markets and modestly boosted expectations

regarding a state-led growth strategy.

However, no clear implications regarding the government's fiscal management stance However, there is no clarification for

emerged, as the publication of specific figures for government expenditures and bond government spending and bond

issuance—the subject of greatest market interest—was postponed. Meanwhile, the issuance. They provided fiscal and

government released long-term economic and fiscal projections under the new growth economic scenario under the growth

strategy. These projections include a scenario in which an additional ¥10 trillion in fiscal investment strategy, representing