Asia
Japan’s GDP Growth Imperils 2% Defense Spending Target
This article is for subscribers only.
The growth of Japan’s GDP may sound like good news for the country, but it also means it will have to pay more to reach its target to spend 2% of GDP on defense, adding to the woes of a nation already under pressure from US President Donald Trump to boost its military output.
Japan’s economy expanded to a record ¥609 trillion ($4.1 trillion) in nominal terms last year, according to a government report released Tuesday. Should the expansion continue, the percentage of the defense budget in comparison to GDP would shrink and could imperil Japan’s target to spend 2% of its GDP on defense by 2027.