Japan’s new prime minister Sanae Takaichi is aiming to revive the world’s fourth-largest economy by investing in 17 strategic sectors, including artificial intelligence, semiconductors, and shipbuilding, according to government documents released on Tuesday.
The comprehensive growth plan, set to be finalized in 2026, is being developed alongside a fresh stimulus package expected later this month. The Nikkei business daily reported the package could exceed 10 trillion yen ($65 billion).
Takaichi, who became Japan’s fifth leader in five years after taking office last month, has formed the Japan Growth Strategy Council to guide the initiative. The council held its first meeting on Monday evening.
Other priority areas for investment include defense, pharmaceuticals, critical minerals, aerospace, space, cybersecurity, quantum computing, and nuclear fusion.
“I ask the relevant ministers to work on securing the necessary supplementary budget and implementing the required tax measures,” Takaichi said during the meeting. She urged officials to begin immediate implementation of feasible measures without waiting for the full plan’s completion.
Takaichi and U.S. President Donald Trump also agreed to enhance cooperation in shipbuilding during their meeting late last month. The semiconductor sector, meanwhile, remains central to Japan’s economic security strategy.
The upcoming stimulus package—one of several in recent years—will also include steps to cushion households from rising prices. Persistent inflation contributed to voter frustration that led to the resignation of Takaichi’s predecessor, Shigeru Ishiba, after only a year in office.
