Polls show that Prime Minister Shinzo Abe is on track to win Japan’s Oct. 22 election, putting the 63-year-old on course to keep his job through 2020 and become the longest-serving leader in the country’s history. Victory for Abe would likely prolong the loose…
Polls show that Prime Minister Shinzo Abe is on track to win Japan’s Oct. 22 election, putting the 63-year-old on course to keep his job through 2020 and become the longest-serving leader in the country’s history. Victory for Abe would likely prolong the loose monetary policy Japan has deployed to kickstart its economy. It might also open the way for a few more rounds with Abe’s new golf buddy, U. S. President Donald Trump. 1. What’s at stake for the economy?
Abe’s monetary easing policy is more likely to stay in place while Abe remains at the helm. While his economic program, dubbed Abenomics, hasn’t reached his target of overcoming deflation, the economy has seen six straight quarters of growth and unemployment is less than 3 percent. The Nikkei 225 stock average closed at its highest since 1996 on Oct. 11.2. What are the main issues in Abe’s campaign?
He wants approval for his plan to divert revenue from an upcoming hike in the sales tax to a 2 trillion yen ($18 billion) education package focused on lower-income families. This will mean putting off a timeline for reining in the country’s swollen debt. Abe also wants a mandate for his stance on North Korea, which focuses on implementing sanctions strictly, rather than opening a dialogue. That approach is supported by Trump. 3. How is Abe’s relationship with Trump?
In February, Trump spoke of his chemistry with Abe over a two-day visit that featured hugs, hand-holding and five hours on the golf course. The two leaders have spoken regularly on the phone as tensions with North Korea escalate, and may play golf once more when Trump comes to Japan for a planned visit next month.
