Japanese Prime Minister Fumio Kishida will step down as ruling party leader in September, ending a three-year term during which he pushed for higher wages and ramped up defence spending.

Kishida, who saw his public support erode amid a series of scandals and political squabbling, will not seek re-election in the Liberal Democratic Party leader, local media, including public broadcaster NHK, reported on Wednesday citing senior administration staff.

His decision to quit will trigger a contest to replace him as party boss, and by extension as the leader of the World’s fourth-largest economy.

Kishida’s successor will face rising living costs, escalating geopolitical tensions, and the potential return of Donald Trump as US president.