London, Oct 24 (IANS): UK's Prime Minister-in-waiting Rishi Sunak on Monday said that he was "humbled and honoured" to be elected leader of the Conservative Party with the support of his fellow MPs but stressed there are major economic challenges ahead.

Sunak was on Monday chosen leader of the party, and the Prime Minister, as his only challenger Penny Mordaunt dropped out of the race shortly before the deadline for nominations, due to lack of necessary support (the backing of 100 MPs). Former Prime Minister Boris Johnson, who is considering a second stab at the job, on Sunday evening announced that he had decided not to run again.

In brief remarks as he reached the Conservative party office here to a warm welcome, Sunak, 42, who will be the first Asian-origin and non-White Prime Minister of the country, he said: "It is the greatest privilege of my life to be able to serve the party I love and give back to the country I owe so much to."

He said that the UK is a great country but faces "profound" economic challenges, and called for stability and unity.

Sunak also paid tribute to outgoing Prime Minister Liz Truss, who had beaten him in the August-September contest to succeed Johnson but saw her government implode in just a month and a half, for her "dignified" leadership "under difficult circumstances abroad and at home".