Shinzo Abe has been elected as Japan's new prime minister by the lower house of parliament.

Earlier Wednesday, Yoshihiko Noda's Cabinet resigned to formally pave the way for the nation's new leader. Abe, who held the post from 2006 to 2007, is now expected to unveil his new cabinet.

Shinzo Abe has been elected as Japan's new prime minister by the lower house of parliament.

The Japanese economy, which has been stuck in deflation for two decades, will be one of his top priorities. He has put pressure on the Bank of Japan to raise its inflation target from one to two percent. Abe also wishes to loosen the limits of Japan's pacifist constitution on the military.