APD | Japan's exports down for ninth straight month

By APD writer Alice

Japan’s exports dropped for a ninth straight month in August as trade conflicts compound a global economic slowdown.

The value of shipments abroad fell 8.2 percent in August from a year earlier, the Japan Times quoted data from the Japanese Finance Ministry as saying. Economists surveyed by Bloomberg had estimated a 10 percent drop. The trade balance was a deficit of ¥136.3 billion.

Slowing demand overseas, especially in China, has weighed on Japan’s exports, one of the economy’s main drivers of growth.

Imports fell 12.0 percent to ¥6.28 trillion, chiefly due to a drop in imports of crude oil and liquefied natural gas.

In trade with the United States, Japan posted a surplus of ¥472 billion, up 3.8 percent. Although exports of vehicles and other products decreased, imports, mainly of aircraft and corn for feed, fell more sharply.

Japan incurred a trade deficit of ¥216.8 billion with mainland China. Exports were down 12.1 percent, while imports slid 8.5 percent, led by mobile phones.

Amid a rapid deterioration in bilateral ties, Japan’s exports to South Korea shrank 9.4 percent. Shipments tumbled 40.8 percent for food, apparently reflecting a boycott of Japanese products in the country.

Imports from South Korea dropped 10.3 percent.

Weak exports make Japan’s economy particularly vulnerable at a time when the nation’s households are bracing for next month’s sales tax hike. Consumer spending has supported growth recently.

(ASIA PACIFIC DAILY)