Japan’s Ruling Party Targets 1000 Trillion yen nominal GDP by 2040, Higher Incomes by 50%

Japan’s Prime Minister Shigeru Ishiba revealed a bold new economic strategy, directing the ruling Liberal Democratic Party (LDP) to present ambitious growth objectives in its manifesto for the upcoming Upper House election. At the heart of the pledge is the aim of achieving a nominal GDP reaching 1,000 trillion yen (or about $6.9 trillion) within 20 years’ time, i.e., by 2040. Besides this goal, the LDP targets an increase of more than 50% in average incomes for the country, with wage growth identified as one of the key priorities for growth in the decades to come.

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The announcement made at a party leadership meeting held on June 9, 2025, suggests a transition towards long-term economic growth and the well-being of Japan’s domestic economy. Currently, Japan’s nominal GDP is estimated to be about 600 trillion yen, which essentially means that this new goal would require a real change in productivity, consumer spending and structural reform across several categories.

The focus on income growth is linked to more general worries about wage stagnation and inequality. Ishiba’s government argues rising household incomes are important to sustaining demand and boosting economic recovery. These targets are not only economic targets but also political messages well designed to motivate voters and government priorities ahead of elections.

These ambitious targets reflect an older government scheme, the 1960s “Income Doubling Plan”, but strongly reflect the government’s desire to shape and fundamentally change the economic future of Japan. Although reaching these targets will not be easy and will require significant reform and ongoing commitment to shaping policy, Ishiba’s clear vision strongly signals that the government wants to put the nation on a path toward stronger and more inclusive growth.