Japan’s Defense Report Card
“In a major milestone for its postwar defense posture, Japan will spend an estimated JPY 8.4 trillion on defense-related outlays in FY2025. This marks a roughly 9 percent increase over the JPY 7.7 trillion allocated in FY2024 and positions Japan’s defense budget at roughly 1.5 percent of GDP, with plans to hit the 2 percent threshold by 2027 still intact. Compared to its long-standing informal 1 percent cap, this represents a fundamental shift in Japan’s approach to defense spending.”
“Japanese defense officials have signaled that the JPY 43 trillion fiveyear buildup plan may be revised to reflect shifting prioritiesparticularly a growing emphasis on autonomous systems, unmanned platforms, and AI-enabled capabilities in response to a worsening security environment. The Defense Ministry is also weighing the impact of yen depreciation, which is eroding purchasing power, and may begin work on the next defense buildup plan earlier than scheduled. These changes could push Japan’s overall defense spending beyond the current 2 percent of GDP target.”