Japan weighs 3.5% of GDP defence spending target after US pressure
Japan is considering a new midterm defence spending target of 3.5 per cent of GDP, matching NATO and South Korea, according to people familiar with the matter. Prime Minister Sanae Takaichi has already pushed spending to almost 2 per cent of GDP, and a new five-year plan is expected at the end of 2026. The move could unsettle markets worried about debt issuance and rising bond yields.