Japan just announced its intention to pour $2.3 trillion into its economy over the next 14 years.
Prime Minister Sanae Takaichi unveiled the plan on June 24, targeting over ¥370 trillion in combined public and private investment through March 2041. The centerpiece: ¥101.6 trillion earmarked specifically for artificial intelligence and semiconductors, with additional allocations for defense, space, and shipbuilding.
The debt elephant in the room
Japan’s general government gross debt stood at 1,324 trillion yen as of end-March 2025. That translates to a debt-to-GDP ratio of roughly 234.9%.
The Bank of Japan already holds approximately 46% of all outstanding Japanese Government Bonds.
