World

Japan to raise foreign direct investment target to $1trln by mid-2030s, sources say

The new targets, to be formally included in the government’s upcoming fiscal and economic policy guidelines in June, represent a sharp escalation from the previous goal of 100 trillion yen by 2030

Japan is set to raise its 2030 foreign direct investment target by 20% and push the figure as high as 150 trillion yen ($1.05 trillion) by the middle of the decade, people familiar with the matter told Reuters.

The mid-decade goal, almost triple the current level of investment of some 50 trillion yen, underscores Japan’s push to revitalise its economy by attracting foreign firms to pump money into key growth sectors such as decarbonisation.

The new targets, to be formally included in the government’s upcoming fiscal and economic policy guidelines in June, represent a sharp escalation from the previous goal of 100 trillion yen by 2030.

The plan is to revise the 2030 goal to 120 trillion yen which will set the stage for accelerated effort in the years beyond to reach 150 trillion yen before 2035, said the people, who declined to be identified as the matter is still private.

The expanded foreign direct investment strategy is also aimed at stimulating regional economies and creating jobs outside major urban centres, the people said.

To this end, they said, the government is considering the use of new grants and enhanced public-private collaboration frameworks to support the establishment of foreign facilities in local areas.

© ZAWYA 2025

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

The growing impact of political risk on financial markets

Risk associated with broad political changes can be quantified with a globally priced factor common…

4 days ago

When public money multiplies, and when it does not: A guide to the catalytic effect of blended finance

Achieving sustainable development goals needs blended finance, where public money is used to crowd in…

4 days ago

Geopolitical oil price shocks: Why these shocks hit harderGeopolitical oil price shocks: Why these shocks hit harder

When geopolitical crises strike, oil prices often surge, with consequences that extend far beyond energy…

4 days ago

Why liquidity evaporates when it is most needed

A common feature of flash crash episodes in financial markets is that liquidity vanishes precisely…

4 days ago

Using global shocks as a laboratory to study executive pay

It is often claimed that executives reap rewards from favourable market tailwinds they did nothing…

4 days ago

When privacy protects but excludes: The hidden costs of data restrictions in digital lending

Privacy regulations empower consumers, but they can also cut off credit for the populations that…

4 days ago