In August, Japan’s total exports grew 5.6% year-on-year, marking the ninth consecutive month of increases, although below the market forecast of 10% and the 10.3% growth recorded in July.
The data showed that Japanese exports advanced at a slower pace than expected in August, while the volume of shipments continued to decline. This reflects how the slowdown in global demand is affecting the country’s fragile economic recovery.
Japan seeks to foster sustainable economic growth, driven by higher wages and robust consumption. However, it faces external risks, such as a possible slowdown in the United States and the weakness of the Chinese economy, which cloud the economic outlook.
Japan’s total exports in August rose 5.6 percent year-on-year, marking the ninth consecutive month of growth, although below the market forecast of 10 percent and following a 10.3 percent increase in July.
Shipment volume fell 2.7 percent from the previous month, marking the seventh consecutive decline. Exports to China, Japan’s top trading partner, rose 5.2 percent year-on-year, while those to the United States fell 0.7 percent.
As for imports, they grew 2.3 percent year-on-year, well below the 13.4 percent expected by economists. This resulted in a trade deficit of 695.3 billion yen ($4.9 billion), lower than the expected deficit of 1.38 trillion yen.
A rebound in personal consumption helped the Japanese economy rebound strongly in the second quarter after a slump earlier in the year, although growth was revised down slightly last week.
The Bank of Japan (BOJ) is likely to keep monetary policy steady at a two-day meeting ending on Friday, although it anticipates possible interest rate hikes, noting progress on its 2% inflation target.
