After vowing to halt Japan’s economic decline, Kishida leaves mixed legacy

Japanese leader’s ‘new capitalism’ produced some positive results but economy still faces major obstacles, analysts say.

In his first policy address after taking office in October 2021, Japanese Prime Minister Fumio Kishida pledged to “faithfully rebuild” the economy after three decades of stagnation.

In a speech to parliament almost exactly two years later, Kishida said the economy was his priority “above all else”.

“The Japanese economy is facing a unique and unprecedented opportunity to achieve a transformation not seen in 30 years,” he told lawmakers.

“To seize this opportunity, I am determined to undertake bold initiatives never seen before.”

As Kishida prepares to step down following a leadership vote by his scandal-tarnished Liberal Democratic Party (LDP) on Friday, the Japanese leader leaves behind an economic legacy characterised by modest gains, rather than transformational change.