Japan plans its largest military expansion in decades, with a defense budget of 8.9 trillion yen
2026-08-31 18:15:18
According to CoinMeta, Japan plans to undertake its largest military expansion in decades, with Tokyo seeking a record defense budget of 8.9 trillion yen (approximately $56 billion). The funds will be used for the development of drones, artificial intelligence, hypersonic missiles, and long-range strike capabilities. However, $56 billion is just the beginning; about 160 projects still have not finalized their costs. Prime Minister Yoshihide Suga is preparing a new defense expansion plan that could significantly increase spending. Japan is already moving in the following directions: - aerial and maritime drones - artificial intelligence-driven military systems - hypersonic missiles - long-range strike capabilities. At the same time, the pressure on spending coincides with the depreciation of the yen and rising borrowing costs. The yield on Japan's 10-year government bonds has climbed to its highest level in thirty years, as military expansion accelerates and financing costs continue to rise.
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