Worries For Japan Economy After Election Shock

Businesses and economists worry Prime Minister Shigeru Ishiba will offer tax cuts and higher spending, and go slow on reforms needed to improve competitiveness (Credit: AFP)

Political uncertainty after Japan's election shock risks slowing economic reforms, pushing up government spending and even holding up the Bank of Japan's exit from its outlier monetary policy, economists said.

Post-war Japan has long been a byword for political stability with the conservative, market-friendly Liberal Democratic Party (LDP) in power for all but four of the last 69 years.