Landslide election in Japan
The Liberal Democratic Party (LDP) has secured 316 out of 465 seats in Japan’s election, the first time a single party has won a two-thirds majority in the lower house since its parliament was set up in its current form in 1947.
The Japan Innovation Party, the LDP’s coalition partner, won in 36 more constituencies on February 8 to taking their combined total to 352 seats.
Prime Minister Sanae Takaichi now faces the challenge of reviving the country’s economy and tackling cost-of-living issues.
The Nikkei 225 index rallied by more than five per cent in early trade on February 9. It then relinquished some gains, but closed up that day up by 3.9 per cent at a record high of 56,363.94.
The LDP’s victory will help Takaichi, pictured, advance her pro-business policies without having to negotiate extensively with opposition parties.
She told reporters that she would pursue “responsible yet aggressive” fiscal policies and wouldn’t reshuffle her cabinet, which was formed less than four months ago.
The country’s first female PM called the snap election in January, just a few months after taking office in October. Under her two predecessors, the LDP lost its parliamentary majority, battled corruption scandals and struggled to curb rising costs.
Historically low inflation in the country has made it sensitive to the rising cost of living over recent years. At this election, voters were worried about the increasing costs of groceries and rent.
The economy is also under pressure from Japan’s ageing population, which has resulted in social-care costs spiking and a diminishing workforce.
Takaichi has pledged to cut taxes and boost the Japanese economy through more spending. There are, however, concerns about where that money will come from given Japan’s high government debt.
The LDP had lost its parliamentary majority under Takaichi’s predecessor Shigeru Ishiba and Takaichi banked on her personal appeal to turn around her party’s fortunes.
She has consolidated support among the LDP’s conservative base by reviving long-dormant matters, such as emphasising traditional values and revising the country’s pacifist constitution, and has also connected with younger Japanese.
