1、 Second Report of the Committee on New Direction of Economic and Industrial Policies June 2023 Committee on New Direction of Economic and Industrial Policies,Industrial Structure Council Ministry of Economy,Trade and Industry (Provisional Translation)2 Table of Contents I.Recognition of Current Situ

2、ation.4(1)Reflection on the Lost 3 Decades and New Direction.4(2)Trends that should be followed in industrial policy over the medium to long term.4 Increased geopolitical risks and other uncertainties.4 Long-term price trends.5 Global inflation.5 Labor Force Trends.5 Trend of declining birthrate.6 I

3、ncreased importance of domestic investment(tangible and intangible).7 Current account trends.7(3)Shift in industrial policy in the world and Japan.8 Urgent response to social issues and increased industrial policy activity around the world.8 Launch of New Direction of Economic and Industrial Policie

4、s.8(4)Signs of change and turning points taking place.9 Increased willingness to make capital investments by companies.9 Largest wage increase in 30 years against a backdrop of global inflation.10 Signs of replacement of industries.10(5)Necessity to carry this momentum to long-term sustainable growt

5、h.10 II.New Direction of Economic and Industrial Policies.11(1)Fostering Expectations to achieve sustainable and continuous growth.11(2)Policy Methods Constituting the New Direction”.12 Mission-Oriented Industrial Policy.12 Updating socioeconomic system(OS).13 Reorganization of 14 themes(from 6 Miss

6、ions+6 OSs+2 New Fields to 8 Missions+5 OSs).13(3)Overall Goals of New Direction.14(4)Economic,industrial,and social structures that support goal achievement.14 Overall view.14 Direction of Policy from a Macroeconomic Perspective.15 Market size in individual sectors.16.Key Policy Tools for the Virtu