TOKYO (AP) – Japan reported yesterday that its exports increased by 1.6 per cent in October from a year earlier, as auto and ship shipments rose.
Government data showed exports to the rest of Asia fell, while exports to the United States (US) and Europe surged.
Japanese imports fell 12.5 per cent to JPY9.8 trillion (USD64 billion), mainly due to lower costs for oil, gas and coal. Shipments of computer parts and cereal also were lower, while steel imports surged.
With exports at JPY9.15 trillion (USD60.5 billion) The trade deficit for October shrank by 70 per cent a year earlier to JPY662.5 billion (USD4.4 billion).
October marked the second straight month of export growth, but the climb slowed from 4.3 per cent in September. That could be bad news for the world’s third largest economy, which heavily depends on export manufacturing to drive growth.
Economists polled by data provider FactSet had expected exports to rise by 1.5 per cent.
“Exports helped drive stronger growth in the first half of this year, but now that the export recovery has run its course, the prospects for a fresh boost to growth appear remote,” economist at Moody’s Analytics Stefan Angrick said in a report.
Japan’s economy contracted at a 2.1-per-cent annual pace in July-September as consumption and investment weakened.
Although Japan’s trade deficit has narrowed in the past year, rising prices for some commodities mean the decline will slow in the months ahead, he said.
Japan recorded a trade deficit, which is not seasonally adjusted, of JPY662 billion (USD4.4 billion), down 70 per cent from the JPY2.2 trillion deficit in October 2022.
Separately, core machinery data for September showed a 1.4 per cent increase, beating expectations, according to Cabinet Office data yesterday.
One bit of recent positive news has been the return of tourists, which are counted as exports, after travel and other social restrictions related to the coronavirus pandemic lifted.
Incoming tourists in October, at more than 2.5 million people, surpassed a record hit four years ago, before COVID-19 struck.
