NEWSMAKER-Japan's Shinzo Abe sought to revive economy, fulfil conservative agenda

TOKYO, July 8 (Reuters) - Shinzo Abe, Japan's longest-serving prime minister, launched his "Abenomics" policies to lift the economy out of deflation, beefed up Japan's military and sought to counter China's growing clout in a historic two-term tenure.

Abe, 67, appeared to have been shot during a campaign speech on Friday, national broadcaster NHK reported.

The conservative lawmaker, who quit abruptly as premier in 2007 after one year in the post, swept back for a rare second stint in 2012 pledging to revive a stagnant economy, loosen the limits of a post-World War Two pacifist constitution and restore traditional values.

He was instrumental in winning the 2020 Olympics for Tokyo, cherishing a wish to preside over the Games and even appeared as Nintendo video game character Mario during the Olympic handover.

Abe became Japan's longest-serving premier in November 2019, but by the summer of 2020, public support had been eroded by his handling of the COVID-19 outbreak as well as a series of scandals including the arrest of his former justice minister. He resigned without presiding over the Games, which were postponed to 2021 due to COVID-19.

He first took office in 2006 as Japan's youngest prime minister since World War Two. After a year plagued by political scandals, voter outrage at lost pension records, and an election drubbing for his ruling party, Abe quit citing ill health.

"What worries me most now is that because of my resigning, the conservative ideals that the Abe administration raised will fade," Abe subsequently wrote in the magazine Bungei Shunju.

"From now on, I want to sacrifice myself as one lawmaker to make true conservatism take root in Japan."

Five years after resigning, which he blamed on the intestinal ailment ulcerative colitis, Abe led his conservative Liberal Democratic Party (LDP) - ousted in 2009 - back to power.

He then launched a three-pronged "Abenomics" strategy to beat persistent deflation and revive economic growth with hyper-easy monetary policy and fiscal spending, along with structural reform to cope with a fast-aging, shrinking population.

Deflation proved stubborn, however, and his growth strategy suffered in 2019 from a sales tax hike and Sino-U.S. trade war. The COVID-19 outbreak the following year triggered Japan's biggest-ever economic slump.

At the outbreak's onset, Abe was slow to close Japan's borders and implement a state of emergency urging people to stay home and shops to close. Critics initially branded the response clumsy and later faulted Abe for a lack of leadership.