Government to Set Concentrated Investment Period for 17 Strategic Fields; Growth Strategy Execution Plan Due at Year-End
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The government convened its Japan Growth Strategy Council on the 1st, discussing the direction of a "Japan Growth Strategy Execution Plan" to be formulated at the end of the year alongside the next fiscal year's budget proposal. To promote public and private investment in 17 strategic fields including artificial intelligence and semiconductors, the government indicated it will designate the five years from fiscal 2027 as a "concentrated investment period" and include priority fields and investment amounts in the execution plan. For the priority fields, it will identify businesses that effectively raise the potential growth rate based on profitability and spillover effects, and will also clarify methods for multi-year budgetary measures to give private companies predictability. Fields of particular importance to economic security will be managed separately under a special account, and legal groundwork will be advanced, including the issuance of "bridge bonds" backed by redemption sources and the establishment of a special account, to enable implementation starting with the next fiscal year's budget proposal. Issues to be examined within the year include addressing labor shortages in the construction sector, supplying growth capital, and developing infrastructure to meet rising electricity demand.