Japan PM Ishiba Sets Nominal GDP Target at $7 Trillion by 2040

Japanese Prime Minister Shigeru Ishiba has set an ambitious target for Japan's economy, aiming to increase the country's nominal GDP to 1,000 trillion yen (approximately $7 trillion) by 2040, up from around 600 trillion yen in 2024. Alongside this, Ishiba seeks to achieve over a 50 percent increase in average income within the same period, prioritizing wage growth that outpaces inflation. He has instructed the ruling Liberal Democratic Party (LDP) to include these goals as key pledges in the upcoming House of Councillors election campaign. This economic vision is part of the LDP's strategy to distinguish itself from opposition parties like the Constitutional Democratic Party of Japan, which favors consumption tax cuts and cash handouts to ease inflation. Ishiba emphasized sharing a clear picture of a strong economy with the Japanese public and has taken a cautious stance on reducing consumption tax. These economic goals come amid ongoing discussions about Japan's economic status and electoral strategies.