TOKYO, Oct 15 (Reuters) – Japan’s Economy Minister Minoru Kiuchi urged global investors to judge the country on its current economic reality rather than perceptions shaped by decades of deflation, arguing it was “transitioning toward a new, growth-oriented economy.”
“Japan is no longer the same economy it was during the long years of deflation,” Kiuchi said at a Reuters NEXT Newsmaker event hosted by LSEG in Tokyo on Thursday. “I would encourage you to assess Japan on the basis of this changing reality.”
Kiuchi, who has long been associated with a group of policymakers advocating aggressive spending to end deflation, also emphasised fiscal sustainability alongside growth, seeking to reassure investors wary of rising public spending under Prime Minister Sanae Takaichi’s administration.
“Some may hear the phrase ‘proactive public finances’ and assume it means lax fiscal discipline, but that is not what we are pursuing,” he said.
Instead, he argued that strategic investments would boost Japan’s growth potential, leading to higher wages, incomes and tax revenue while preserving fiscal sustainability.
The government has rolled out a growth strategy targeting more than 370 trillion yen ($2.34 trillion) in public and private investment by fiscal 2040 in areas including semiconductors, artificial intelligence, quantum technologies and content industries.
($1 = 157.8400 yen)
(Reporting by Rocky Swift and Makiko Yamazaki; Editing by Jamie Freed)
