Japanese Prime Minister Fumio Kishida has announced that he will step down in September, ending his three-year term marked by political scandals. Kishida’s decision not to seek re-election as the Liberal Democratic Party (LDP) leader comes amid sliding public support and discontent over the rising cost of living. This move paves the way for a new premier to address the impact of increasing prices in the country.
His departure triggers a contest to replace him as the LDP president, and subsequently as the leader of the world’s fourth-largest economy. The incoming leader will need to unite a divided ruling group and tackle various challenges, including rising living costs, escalating tensions with China, and the potential return of Donald Trump as US president.
During his tenure, Kishida led Japan out of the COVID-19 pandemic through significant stimulus spending and appointed a new head of the Bank of Japan to address inflation. His departure is expected to impact risk-assets like equities and could lead to tighter fiscal and monetary conditions depending on the incoming candidate.
Despite sticking with hawkish security policies, such as a significant military buildup, Kishida also focused on boosting household incomes through wage hikes and promoting share ownership. He also worked to improve relations with South Korea, in collaboration with the US, to counter North Korea’s regional threats.
Overall, Kishida’s exit will mark the end of an era for Japan and signal a new chapter in addressing the country’s economic and geopolitical challenges under new leadership.
Source
Photo credit nypost.com