Japan’s government will aim to achieve annual real economic growth of more than 1%, according to the draft of its long-term economic blueprint. This target would more than double the current pace of 0.4% average real growth rate over the last five years.

Economic Blueprint

The draft outlines a break from a long-standing pattern of underinvestment, as the government seeks to work with the private sector to channel resources into strategic industries. Combined public and private investment is projected to exceed 370 trillion yen ($2.29 trillion) through fiscal 2040.

The government aims to lift annual private-sector capital expenditure to around 230 trillion yen by the same fiscal year and grow gross domestic product to nearly 1,100 trillion yen. The draft also reiterates a commitment to fiscal sustainability, pledging to steadily reduce the debt-to-GDP ratio while balancing growth objectives.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.