Fumio Kishida Steps Down: Japan on the Verge of Leadership Transition

The ruling Liberal Democratic Party (LDP), which has governed Japan with little interruption since 1945, is set to hold an internal leadership contest next month amid declining popularity due to rising prices.

“In this presidential election, it is essential to demonstrate to the public that the LDP is evolving into a new and improved party,” Kishida stated to reporters in Tokyo.

“For this to happen, transparent and open elections, along with free and robust debate, are crucial. The clearest first step in showing that the LDP is ready for change is for me to step down,” he said.

“I will not be participating in the upcoming presidential election.”

Here’s a rephrased version:

Kishida had previously informed senior administration officials of his decision not to seek re-election, according to reports from national broadcaster NHK and Kyodo News.

In Japan, the leader of the ruling party typically also serves as prime minister.

Kishida, 67, has been in office since October 2021, but both his and his party’s approval ratings have sharply declined due to rising prices impacting Japanese households.

This year, his cabinet’s support rating has hovered around 25 percent, according to an NHK poll.

Japan, the world’s fourth-largest economy, has also faced economic challenges, with output contracting by 0.7 percent in the first quarter.

In November, Kishida introduced a stimulus package worth 17 trillion yen (over $100 billion at the time) in an attempt to counter inflation and stabilize his leadership.

After years of stable prices, Japanese voters have been hit hard by rising costs since Russia’s invasion of Ukraine in 2022, which drove up energy prices and put the government under pressure.

Although the yen has shown some recovery recently, it has been one of the worst-performing currencies globally over the past year, plummeting against the dollar.

While this benefits Japanese exporters, it also makes imports more expensive, fueling inflation for households.

In the three years since the Covid-19 pandemic, the government has already injected hundreds of billions of dollars into the economy, even before the stimulus announced in November.

Kishida theoretically could have governed until 2025, and there was speculation that he might call a snap election to strengthen his position.

However, NHK reported that many within the LDP believed the party would struggle to win elections under Kishida’s leadership.

Kishida has also faced intense criticism over a major funding scandal within the party.

According to NHK, the prime minister “appears to have concluded that he must take responsibility to address the growing mistrust.”

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