Higher defense spending won’t unsettle markets, government adviser says
Japan is considering a new medium-term target to raise defense spending to 3.5% of gross domestic product over 10 years.
Any expansion of Japan's defense spending is unlikely to cause significant market anxiety in a single year, according to a government adviser. Takuji Aida, chief economist at Credit Agricole, stated that such a goal is set for a longer-term timeframe of 10 to 15 years. Aida further mentioned that Prime Minister Sanae Takaichi's ¥370 trillion ($2.3 trillion) public-private investment plan for strategic sectors is designed to operate through 2040, indicating that any future increase in defense spending would follow a similarly long-term approach.
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