Japanese Prime Minister Kishida Fumio. (Source: JIJ)I

The above information was published by media outlets such as NHK, Japan Times, The Yomiuri Shimbun ... on August 14. This withdrawal will open a race to find a new person to hold the position of Party Chairman.

Under Japanese law, Mr. Kishida will step down as Prime Minister after the LDP elects a president, as the party currently holds a majority in the Diet.

He was elected LDP president in 2021. With the decision, Mr. Kishida also marked the end of his three-year term as prime minister and LDP president, which he used to push for wage increases and increased defense spending.

Prime Minister Kishida's successor will face rising living costs, escalating geopolitical tensions and the possibility of Donald Trump returning to the US presidency in early 2025.

Local media reported that Prime Minister Kishida is expected to hold a press conference to announce the news later today, August 14.

Under Mr Kishida, Japan’s economy has been spared the devastation of the Covid-19 pandemic by massive stimulus packages. He has also moved away from trickle-down economics that promotes corporate interests and focused on supporting policies aimed at boosting household incomes, including wage increases.

Besides, Prime Minister Kishida is also credited with improving relations with South Korea.

However, according to NHK , there are growing voices within the LDP that believe that under Mr. Kishida's administration, the party will not be able to achieve good results in the general election, scheduled for 2025. The leader also faces fierce criticism over a major funding scandal within the party.

Japan's cabinet approval rating has hit its lowest level since Mr Kishida took power in 2021, falling below 30% - a threshold considered "dangerous" for a government.