Challenges await as Japan mobilizes for 8 February election

key takeaways
  • Prime Minister Takaichi Sanae made plans for an election official, announcing that she will dissolve the House of Representatives on 23 January for an 8 February election.
  • As a sign of how Japanese politics has changed, victory for Takaichi and the Liberal Democratic Party (LDP) could depend on a large increase in turnout, particularly among younger voters, whose support for Takaichi is exceptionally high.
  • The impact of the election could be limited insofar as significant challenges await the government after the election, including managing market expectations of higher inflation and navigating a rapidly changing world order.

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