Japan’s exports slip in fresh sign recovery is sputtering

JAPAN’S exports slipped lower for the first time in three months in November, in a fresh sign that the economic recovery is sputtering.

The value of exports fell 0.2 per cent from a year earlier, the finance ministry said on Wednesday (Dec 20). Economists had forecast a 1.4 per cent increase. Imports decreased 11.9 per cent, compared with the consensus for an 8.6 per cent decline.

The trade deficit widened to 776.9 billion yen (S$7.18 billion).

Japan’s economy experienced its sharpest contraction since the height of the pandemic in the three months to September.

The Bank of Japan noted in its October outlook report that exports and production “are projected to be more or less flat for the time being, affected by the slowdown in the pace of recovery in overseas economies”. That’s despite weakness in the yen, which would normally support overseas shipments.

Wednesday’s data highlighted the patchy state of the global economy, with exports to the US rising 5.3 per cent on year, while those to Europe were flat and shipments to China fell 2.2 per cent.

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The Federal Reserve last week sent a clear signal that it’s ready to ease back on restrictive policy next year as it pursues a soft landing. In Europe, economists see a growing likelihood that the economy contracted in the fourth quarter, putting it in a technical recession. Meantime, recent economic indicators for China were not encouraging. BLOOMBERG