Weak demand for its goods in some of its major markets such as China, South Korea and other Asian economies has pushed Japanese exports to fall for the 10th straight month in September, the Japanese government said in a statement.
The trade tensions and wars between Japan and its traditional trade partner and neighbor South Korea and that between the United States and China is having significant on Japan’s export growth, showed indicated data from the government.
September also marked the third consecutive month of a trade deficit which totaled $1.1 billion, said the Japanese Finance Ministry. There was a 5.2 per cent year on year drop in exports for the month of September as the economy witnessed lower machinery shipments and export demand of auto parts. There was a consequent 1.5 per cent drop in imports.
There was also an 8 per cent year on year drop in exports into the US while imports from the US dropped by 12 per cent resulting in a 3.5 per cent drop in the trade surplus with the US which came to 564.1 billion yen or $5.2 billion in September.
Economist with HIS Markit said that the ongoing trade deficit with Asia as well as the the enhancement of the same with the US was reflected in the trade deficit number s of Japan.
“The risks that exports will shrink drastically have subsided but it is expected that time will be needed before exports can recover considerably,” said Taguchi.
A number of economies are suffering because of the trade war between the US and China as it had rattled and slowed down growth of manufacturers within extended supply chains in the Asian region – including Japan. The trade uncertainty for Japan was also increased by the its ongoing dispute with South Korea over exports of certain high-tech goods.
The third largest economy of the world also exported lower quantities of car and airplane parts to the United States as well as a drop in the export of semiconductor production equipment and materials to neighbor South Korea because of a trade spat.
Economists were expecting a drop of 4 per cent in exports for Japan and this drop marked the longest period of drop in exports for the report dependent economy since a similar drop in exports that occurred for 14 consecutive months from October 2015 to November 2016.
The Japanese government on Friday had flagged concerns about flagging exports as it lowered its assessment of the Japanese economy.
“There is a possibility that there will be another fall in exports hereafter,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance. “Though overall conditions are currently stable, it would become a factor for monetary easing if it did affect Japan’s economy as a whole.”
“Going forward, imports are going to decline as consumption will be hurt” by the tax hike, said Takeshi Minami, chief economist at Norinchukin Research Institute. “The trade deficit is likely going to be reduced over the coming months.”
(Source:www.foxbusiness.com)
The trade tensions and wars between Japan and its traditional trade partner and neighbor South Korea and that between the United States and China is having significant on Japan’s export growth, showed indicated data from the government.
September also marked the third consecutive month of a trade deficit which totaled $1.1 billion, said the Japanese Finance Ministry. There was a 5.2 per cent year on year drop in exports for the month of September as the economy witnessed lower machinery shipments and export demand of auto parts. There was a consequent 1.5 per cent drop in imports.
There was also an 8 per cent year on year drop in exports into the US while imports from the US dropped by 12 per cent resulting in a 3.5 per cent drop in the trade surplus with the US which came to 564.1 billion yen or $5.2 billion in September.
Economist with HIS Markit said that the ongoing trade deficit with Asia as well as the the enhancement of the same with the US was reflected in the trade deficit number s of Japan.
“The risks that exports will shrink drastically have subsided but it is expected that time will be needed before exports can recover considerably,” said Taguchi.
A number of economies are suffering because of the trade war between the US and China as it had rattled and slowed down growth of manufacturers within extended supply chains in the Asian region – including Japan. The trade uncertainty for Japan was also increased by the its ongoing dispute with South Korea over exports of certain high-tech goods.
The third largest economy of the world also exported lower quantities of car and airplane parts to the United States as well as a drop in the export of semiconductor production equipment and materials to neighbor South Korea because of a trade spat.
Economists were expecting a drop of 4 per cent in exports for Japan and this drop marked the longest period of drop in exports for the report dependent economy since a similar drop in exports that occurred for 14 consecutive months from October 2015 to November 2016.
The Japanese government on Friday had flagged concerns about flagging exports as it lowered its assessment of the Japanese economy.
“There is a possibility that there will be another fall in exports hereafter,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance. “Though overall conditions are currently stable, it would become a factor for monetary easing if it did affect Japan’s economy as a whole.”
“Going forward, imports are going to decline as consumption will be hurt” by the tax hike, said Takeshi Minami, chief economist at Norinchukin Research Institute. “The trade deficit is likely going to be reduced over the coming months.”
(Source:www.foxbusiness.com)