Prime Minister Takaichi Sanae (高市早苗) delivered a policy speech at the extraordinary session of the Diet, positioning growth investment and crisis-management investment as the top policy priorities for economic growth. She indicated that the government would flesh out its growth strategy for the next 5 years and its Regional Future Strategy by the end of 2026 and spring 2027, respectively.
In her policy speech on 5 October, Prime Minister Takaichi Sanae (高市早苗) positioned growth investment and crisis-management investment as the top policy priorities for economic growth. In her responses on 8 October, she stated that reflationary policy was not required at this stage and emphasised measures to promote domestic investment.
Regarding the Japan Growth Strategy, she said the Japan Growth Strategy Implementation Plan, which will set out a roadmap for domestic investment over the next 5 years, would be formulated during 2026, specifying targets, timing, budget, the roles of the government and private sector, and investment and technology-development strategies for areas eligible for support. She also referred to sweeping regulatory reform.
Regarding the Regional Future Strategy, she outlined plans to formulate the Regional Future Strategy Implementation Framework, which will set out the policy for support over the next 5 years, and to publish a domestic investment map by spring 2027. As part of the response to population-related challenges, the plans include formulating a comprehensive population strategy by the end of 2026.
She also addressed the creation of financial resources and fiscal management, positioning the Strong and Prosperous Japan investment framework as an investment programme, emphasising spending based on multiyear plans, considering measures including income tax reductions, and indicating that the government would take flexible action while respecting the Bank of Japan's independence.