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The Guardian - UK
The Guardian - UK
World
Phillip Inman

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

Sanae Takaichi places a red paper rose on the name of an elected candidate at her party headquarters on general election day in Tokyo in February
Sanae Takaichi, leader of the ruling Liberal Democratic Party, puts a red paper rose on the name of an elected candidate at February’s general election. Photograph: Kim Kyung-Hoon/Reuters

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.

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