TOKYO: Japan’s exports slipped for a ninth straight month in August as the Sino-US tariff dispute hit demand from China and other Asian trading partners, heightening risks for the world’s third-largest economy.
The negative reading adds some pressure to the Bank of Japan to expand stimulus at its policy meeting on Thursday to prop up business sentiment and manufacturing activity, which have been hit by global economic weakness.
Exports in August slumped 8.2 per cent from a year earlier, Ministry of Finance data showed on Wednesday, dragged down by autos, car parts and semiconductor production equipment.
The fall was smaller than a 10.9 per cent drop expected by economists but marked the longest run of declines in exports since a 14-month stretch from October 2015 to November 2016.
“It’s worrying that exports to Asia and especially China are falling,” said Atsushi Takeda, chief economist at Itochu Economic Research Institute.
“There’s no doubt that the Chinese economy is slowing down as the impact of the third round of US tariffs is starting to be felt.”
Exports in volume terms, which strips away the exchange rate impact, fell 6.0 per cent year-on-year in August, more than reversing July’s increase, which was the first in nine months.
Fears of a global slump have persisted in recent weeks as uncertainty over US trade policy clouds the outlook for growth in the United States and export-reliant economies such as Germany, Japan and China.
“The high growth rate of the US economy that was seen until now could come down,” said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
“There’s a possibility exports to the United States will stagnate on the back of that.” — Reuters
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