Despite Sanae Takaichi’s historic victory in the Liberal Democratic Party leadership race, Japan’s economic policy outlook remains clouded as the ruling bloc lacks a majority in both chambers of parliament.
Takaichi, who is now poised to become the country’s first female prime minister, is expected to have a tough time moving economic policies forward swiftly unless she successfully finds an additional coalition partner.
But analysts seem sure on two things — Takaichi’s pro-fiscal stimulus stance means Japan is likely to expand government spending, and the LDP will compromise more with opposition parties.
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