Key facts
- Japan's economy minister declared the nation is no longer in deflation.
- Minister Minoru Kiuchi urged investors to reassess Japan on its changing economic reality.
- The government has a growth strategy targeting over 370 trillion yen in investment by fiscal 2040.
Japan's Economy Minister Minoru Kiuchi stated on Thursday that the nation is no longer experiencing deflation and is transitioning toward a growth-oriented economy. Speaking at a Reuters NEXT Newsmaker event, Kiuchi urged global investors to evaluate Japan based on its current economic conditions rather than outdated perceptions. He emphasized that the government's pursuit of 'proactive public finances' is not indicative of lax fiscal discipline but rather strategic investments aimed at boosting growth potential, leading to higher wages, incomes, and tax revenue while maintaining fiscal sustainability. The administration has outlined a growth strategy targeting over 370 trillion yen ($2.34 trillion) in public and private investment by fiscal 2040, focusing on sectors such as semiconductors, artificial intelligence, and quantum technologies.