CAN JAPAN AVOID A LIZ TRUSS-STYLE SHOCK AS ITS PM EMBARKS ON A GIANT SPENDING SPREE?

Japan's Prime Minister, Sanae Takaichi, has unveiled a plan to inject £1.7tn into 17 industrial sectors by 2040, aiming to double the country's economic growth, according to Money | The Guardian. This move has raised concerns among international investors and some members of her own party, who fear it could lead to an economic shock similar to the one experienced in the UK under Liz Truss. The large-scale spending plan has sparked worries about the source of the extra funds.

The spending plan amounts to ¥370tn, which is a significant increase, and many are questioning where this money will come from, as reported by Money | The Guardian. The concern is so significant that some in the Prime Minister's own party believe this could 'blow up' the Japanese economy. No specific details on funding sources have been provided in the available information.

The context of this situation is that large-scale government spending can have significant effects on a country's economy, and the comparison to Liz Truss's experience in the UK highlights the potential risks involved. This move by Japan's Prime Minister is part of her coalition government's efforts to boost the economy, but it appears to be facing skepticism from various quarters.

• Japan plans to spend £1.7tn in 17 industrial sectors by 2040
• The goal is to double Japan's economic growth
• Concerns about the plan's potential to cause an economic shock similar to the UK's under Liz Truss

Read the original source for full detail available at Money | The Guardian src