Japan reportedly preparing a larger economic stimulus under Prime Minister Takaichi

Reuters reports, citing government sources familiar with the plan

Reports suggest that Japan is planning a substantially larger economic stimulus package under the new leadership of Prime Minister Sanae Takaichi, expected to exceed last year’s ¥13.9 trillion program.

According to sources, the upcoming package will focus on three key pillars:

1. Combating inflation,
2. Investing in growth-oriented industries, and
3. Strengthening national security.

This will mark one of Takaichi’s first major policy initiatives since taking office. Given her reputation as a fiscal dove, the move aligns with expectations for continued government spending to support Japan’s economic recovery.

The scale and composition of the package are still being finalized, but markets are already watching closely for details on timing and funding — as Japan’s new administration seeks to balance stimulus-driven growth with the nation’s mounting debt challenges.