Japanese Prime Minister Shinzo Abe said today he would call an early election to seek a fresh mandate for his economic policies, and postpone an unpopular sales tax rise.
His comments come a day after data showed the Japanese economy had slipped back into recession.
The world's third-biggest economy unexpectedly shrank for a second consecutive quarter in the three months from July to September, a sign the pain from an initial rise in the sales tax to 8%from 5% in April was lasting longer than expected.
Abe said he would delay a second increase to 10% that had been scheduled for October 2015 for 18 months.
He added he would dissolve the lower house on November 21 for an election that must be held within 40 days. The vote is expected on December 14.
The prime minister - who returned to power in December 2012 pledging to revive growth with a radical mix of hyper-easy monetary policy, spending and reform - insisted his policies were working and challenged the opposition to come up with an alternative.
"I am aware that critics say 'Abenomics' is a failure and not working but I have not heard one concrete idea what to do instead. Are our economic policies mistaken, or correct? Is there another option?" he asked at a televised news conference.
"This is the only way to end deflation and revive the economy," he added.
But Abe pledged that the sales tax rise, needed to fund swelling social security costs and curb Japan's massive public debt, would be implemented without fail in April 2017.
Abe is seeking to renew his mandate just as doubts about the success of his strategy are deepening. No election for parliament's lower house needed to be held until late 2016.
But Abe is hoping to cement his grip on power before his support ratings, now below 50% in some surveys but still sturdy by Japanese standards, slip further.
Critics say that Abenomics has benefited big companies and affluent city dwellers by weakening the yen and boosting the stock market, but that ordinary Japanese have been hurt because inflation has outpaced wage increases.
Abe told reporters earlier, after meeting his economic advisers, that consumption was stalling despite other positive signs and he would prepare stimulus steps, especially for smaller firms and regions. Media reports said the package could be worth 2-3 trillion yen ($17-$26 billion).
The sales tax has been a jinx for Japanese leaders in the past, several of whom lost their jobs over the levy.
A hefty majority of voters were opposed to raising it now. Abe, who is serving his second term as prime minister aftera troubled 2006-2007 term, inherited the sales tax plan from hi spredecessor based on a ruling-opposition party agreement in which he played no direct part.
