Suga's strategy will boost semiconductors and regions

Significance

Priorities include digitalisation, a greener society, regional vitality and increased child support. Perhaps the most strategically important element, however, is the aim of reviving Japan's declining semiconductor sector. Japan still has more chip factories than any other country, but is far from the cutting edge.

Impacts

• The goal of fiscal balance by 2025 is a placeholder; the decades-long pattern of repeated deferral will continue.
• Economic trends and government policy will drive regional renewal in many areas, but the impact on the national level will not be large.
• Greater support of women and children will at best have a small effect on raising Japan’s low birth rate.