FT Advises Japan’s Takaichi to Not to Inherit Abenomics

London, Oct. 9 (Jiji Press)–The British daily Financial Times has said that Sanae Takaichi, the new leader of Japan’s ruling Liberal Democratic Party, should pursue her own economic policies instead of inheriting the “Abenomics” growth strategy. Takaichi, likely to become the next Japanese prime minister, is expected to take economic policy measures in line with the Abenomics strategy, implemented by her political mentor, the late former Prime Minister Shinzo Abe. In an opinion piece in Wednesday’s edition, the FT voiced concern that Takaichi may “embrace opposition calls for cash handouts and tax cuts,” given that the LDP has lost control of both chambers of parliament unlike when Abe was in his second term as prime minister. Bond market players see Takaichi as an advocate of aggressive fiscal spending, leading to rises in Japanese long-term interest rates. “Bond markets have already signaled concern about Japan’s fiscal sustainability,” the newspaper said. “She would be wise to limit largesse to the most hard-pressed groups and most productive sectors.” The FT also said that Takaichi, who would be her country’s first female prime minister, should pursue “Takanomics,” working to increase women’s role in the economy, which Abenomics did not achieve sufficiently. Japan needs to accept more foreign workers considering its declining population, but Takaichi has stressed her concerns about existing levels of immigration and soaring foreign tourist arrivals, the newspaper said. END [Copyright The Jiji Press, Ltd.]