Japan PM Kishida announces withdrawal from party leadership race

Japanese Prime Minister Fumio Kishida announced on Wednesday (Aug 14) that he will not seek re-election as leader of the Liberal Democratic Party (LDP) next month, effectively ending his leadership.

"The most obvious first step to show that the LDP will change is for me to step aside. I will not be running in the forthcoming (party) presidential election," Kishida told reporters.

The ruling Liberal Democratic Party, which has governed Japan almost uninterrupted since 1945, is due to hold an internal leadership contest next month.

The 67-year-old Kishida has been in office since October 2021, and has witnessed his poll ratings fall significantly due to the impact of rising prices.

Kishida’s cabinet's support rating has been faded to around 25 percent this year, according to an NHK poll.

The world's fourth-largest economy has also faced difficulties, with output contracting by 0.7 percent in the first quarter.

Kishida in November announced an incentive package worth 17 trillion yen (more than $100 billion at the time) as he tried to ease the pressure from inflation and rescue his premiership.

However, the Japanese voters have been suffering from rising prices since Russia invaded Ukraine in 2022, pushing up energy costs and putting pressure on the government.

In spite of some recovery in recent weeks, the yen has been one of the world's worst-performing currencies over the past year, falling sharply against the dollar.

Kishida, who has overseen improving relations with South Korea, could theoretically remain in office until 2025.

However, there is speculation that he might call a snap election. NHK reported increasing concerns within the LDP and saidthe party may struggle to compete in elections under Kishida's leadership.

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

The NHK said, “The PM seems to have figured out that he himself needs to take responsibility in order to dismiss growing distrust."

(With inputs from agencies)