FOCUS: Kishida Facing Economic Policy Challenges after Election

Politics

Tokyo, July 12 (Jiji Press)--The government of Japanese Prime Minister Fumio Kishida faces the difficult task of steering the country's economic policy following his ruling Liberal Democratic Party's major victory in the House of Councillors election on Sunday.

He must tackle issues such as surging energy prices reflecting Russia's invasion of Ukraine and high inflation amid the depreciation of the yen.

Soaring inflation is feared to negatively impact consumer spending and corporate profits, pushing down the economy, which is starting to recover from the slump blamed on novel coronavirus crisis.

The government hopes to use its 5-trillion-yen reserve funds in the fight against inflation in the short term while considering the possibility of compiling a second supplementary budget for fiscal 2022, which began in April, by the end of this year.

[Copyright The Jiji Press, Ltd.]

Jiji Press