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Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree?

Sanae Takaichi’s blueprint to inject £1.7tn and double economic growth leaves many investors fearful

International investors are asking where Japan’s prime minister will find the ¥370tn (£1.7tn) of extra cash that she wants to invest in 17 industrial sectors by 2040.

Such is the scale of spending by Sanae Takaichi’s coalition government that many in her own party fear she is about to blow up the Japanese economy, triggering a Liz Truss-style economic shock.

Jul 25, 2026 Japan Sanae Takaichi Business

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Japan Jul 25, 2026 Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree? Sanae Takaichi’s blueprint to inject £1.7tn and double economic growth leaves many investors fearfulInternational investors are asking where Japan’s prime minister will find the ¥370tn (£1.7tn) of extra cash that she...

Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree?

Sanae Takaichi’s blueprint to inject £1.7tn and double economic growth leaves many investors fearfulInternational investors are asking where Japan’s prime minister will find the ¥370tn (£1.7tn) of extra cash that she...

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Can Japan avoid a Liz Truss-style shock as its PM embarks on a giant spending spree?

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