Japan outlines scenario of GDP growth to nearly $7 trillion by 2040

Japan aims to significantly boost its nominal GDP to nearly $7 trillion, which suggests increasing 1.8 times its current level. This ambitious plan has been outlined by the country’s Ministry of Economy, Trade and Industry.

The strategy includes a goal to double domestic investment to 200 trillion yen ($1.42 trillion) by 2040, focusing on funding strategically important industries with an emphasis on digitalization and economic security.

According to the plan outlined by the government, capital investment will need to grow by 4% annually to meet these targets. Under such conditions, Japan's nominal GDP is projected to increase by 3.1% each year, potentially reaching 975 trillion yen ($6.94 trillion) by 2040. The ministry also intends to raise nominal wages by enhancing labor productivity and investing in labor-saving technologies.

As reported by The Japan News, this economic growth scenario will serve as a foundation for corporate tax reform and other initiatives aimed at stimulating investment in the country.