TOKYO — Japan’s ruling Liberal Democratic Party on Saturday elected conservative nationalist Sanae Takaichi as its new president, positioning her to become the country’s first female prime minister.
The decision comes as the party struggles to restore public trust amid growing dissatisfaction over rising prices and waning confidence in its leadership.
Takaichi, 64, will likely succeed outgoing Prime Minister Shigeru Ishiba after a parliamentary vote on October 15, though her path to the premiership is not guaranteed. The Liberal Democratic Party, long Japan’s dominant political force, has seen its parliamentary majority weaken over the past year.
Takaichi emerged victorious from a closely watched leadership race, defeating the more moderate Shinjiro Koizumi, 44, in a second round runoff. Koizumi, a popular reformist and son of former Prime Minister Junichiro Koizumi, had sought to become Japan’s youngest leader in the modern era.
The leadership contest followed Ishiba’s resignation amid mounting criticism over his government’s handling of inflation and declining real wages.
Japan’s economy, the world’s fourth largest, continues to grapple with sluggish growth, high public debt, and pressure on households from rising food and energy costs.
Takaichi, a former internal affairs minister, is a staunch advocate of the late Shinzo Abe’s economic agenda, known as “Abenomics,” which combines aggressive fiscal spending and ultra loose monetary policy. She has also voiced skepticism toward recent Bank of Japan interest rate hikes, arguing they could stifle recovery.
I have heard harsh voices from across the country saying they don’t know what the LDP stands for anymore, Takaichi said after her victory. “That sense of urgency drove me. I want to turn people’s anxieties about their daily lives and the future into hope.”
The party’s leadership shift comes at a critical time. Support for the LDP has fallen below 30 percent in recent polls, with voters gravitating toward opposition parties promising stronger economic support and tighter controls on immigration.
Political analysts say Takaichi’s election represents both continuity and risk. While her economic platform closely mirrors Abe’s stimulus driven policies, her nationalist stances could heighten regional tensions.
Her victory underscores the LDP’s desire to reconnect with its conservative base while responding to economic pressures, said Hiroshi Takahashi, a political science professor at Waseda University. “But her foreign policy positions, particularly her visits to the Yasukuni shrine, may strain ties with China and South Korea.”
Economists are also cautious. Japan’s public debt, already more than twice its GDP, leaves limited room for fiscal expansion. A return to aggressive spending could unsettle investors wary of the country’s long term fiscal sustainability.
Markets will be watching closely, said Ayako Nakamura, chief economist at Tokyo Financial Group. “If Takaichi pressures the Bank of Japan to ease policy or delays fiscal consolidation, it could weigh on the yen and bond markets.”
Japan’s inflation rate rose to 3.2 percent in August, its highest level in more than three decades, while real wages have stagnated. Public approval of the Ishiba administration fell to 24 percent before his resignation, the lowest since the 2000s.
The LDP’s parliamentary dominance has also eroded. It and its coalition partner lost majorities in both houses for the first time in more than a decade, raising questions about the stability of a Takaichi led government.
Comparatively, Japan has lagged behind other major economies in female political representation. Women hold fewer than 10 percent of parliamentary seats, and no woman has ever served as prime minister. Takaichi’s rise, observers say, could mark a symbolic milestone for gender equality in Japanese politics.
Reactions among voters were mixed following the leadership announcement. “I think it’s time Japan had a woman leader,” said Yuki Matsumoto, a 29 year old office worker in Osaka. “But I hope she focuses on the economy and not just conservative issues.”
Others expressed skepticism about whether the leadership change would bring meaningful reform. “The LDP has been in power for so long, and people are tired,” said Kenji Tanaka, a retired teacher in Tokyo. “It doesn’t matter who leads if policies don’t change.”
Younger voters, increasingly drawn to opposition parties promising bigger stimulus and stricter immigration controls, remain a key challenge.
“I’m not sure the LDP understands our generation’s struggles,” said university student Mai Suzuki. “We need jobs, affordable housing, and a sense of security.”
Takaichi faces immediate tests: stabilizing prices, boosting real wages, and rebuilding trust among disillusioned voters. She must also navigate complex diplomatic terrain, balancing Japan’s alliance with the United States under President Donald Trump’s administration and managing frayed relations with neighboring countries.
Her proposal to revisit a US investment deal that exchanged Japanese investments for lower tariffs could renew trade tensions. Meanwhile, her visits to the controversial Yasukuni shrine may draw criticism from Beijing and Seoul, which view the site as a symbol of Japan’s wartime aggression.
Domestically, Takaichi’s ability to unify the fractured LDP and regain a parliamentary majority will determine the durability of her leadership. A general election could be called as early as next year if instability persists.
“Her leadership will be defined by how she balances economic pragmatism with ideological conviction,” said Takahashi. “Japan needs growth and stability more than symbolism.”
As Sanae Takaichi prepares to step into the role of Japan’s first female prime minister, she inherits a nation facing economic strain, political uncertainty, and shifting voter loyalties.
Her success will depend on whether she can deliver tangible improvements to everyday life while steering the LDP through turbulent times.
Whether her premiership marks a new era of reform or a continuation of old policies remains to be seen. But her rise signals a historic moment for Japan, a country at a crossroads between tradition and transformation.