Japan PM Kishida to withdraw from party leadership race

• The ruling Liberal Democratic Party (LDP) will hold an internal leadership contest next month.
• Kishida informed senior administration officials of his decision not to run.
• His cabinet's support rating has hovered around 25% this year.

Japanese Prime Minister Fumio Kishida plans to withdraw from the race to retain his party's leadership, local media reported Wednesday. This move is likely to bring an end to his nearly three-year premiership.

The ruling Liberal Democratic Party, which has governed Japan almost continuously since 1945, will hold an internal leadership contest next month.

Kishida has informed senior administration officials of his decision not to run, according to reports from national broadcaster NHK and Kyodo news.

Kishida is scheduled to hold a news conference later on Wednesday, with his office stating that he will speak at 11:30 a.m. (0230 GMT).

Kishida, 67, has served as Prime Minister since October 2021 and has seen his poll ratings plummet due to rising prices affecting Japanese incomes.

NHK’s poll shows his cabinet’s support rating has hovered around 25 percent this year.

Japan, the world’s fourth-largest economy, has also struggled with economic challenges, experiencing a 0.7 percent contraction in output during the first quarter.

In November, Kishida announced a 17 trillion yen ($100 billion) stimulus package to alleviate inflationary pressures and salvage his premiership.

Japanese voters, who had experienced stable prices for years, have struggled with rising costs since Russia’s 2022 invasion of Ukraine. This conflict has driven up energy prices and intensified pressure on the government.

Despite recent recovery, the yen has been one of the world’s worst-performing currencies over the past year, sharply falling against the dollar.

Although Japanese exporters benefit from a weaker yen, it has made imports more expensive and fueled inflation for households.

Even before November, the government had injected hundreds of billions of dollars into the economy over the past three years since the Covid-19 pandemic.

Kishida, who has improved relations with South Korea, could theoretically govern until 2025, but speculation has arisen that he might call a snap election.

NHK reported that voices within the LDP have increasingly expressed doubts about the party's ability to fight elections under the Kishida government.

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

The prime minister “seems to have judged that he needs to take responsibility to dispel growing distrust,” NHK said.

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