The Japanese export growth continues to slow
August 25, 2010
The Japanese export growth at an annual rate slowed for the fifth consecutive month in July, and economists expect that the strong yen boosts over the coming months the impact of weaker foreign demand on trade balance of the archipelago.
Nippon Exports rose 23.5% last month compared with July 2009, show statistics released Wednesday by the Ministry of Finance.In June, the increase was 27.7%.
This increase is slightly higher than expected 21.9% on average by economists polled by Reuters.
Exports to Asia, which represents more than half of total Japanese sales abroad rose 23.8% year on year while exports to the U.S. by 25.9%.
Imports, they have increased by 15.7% yoy. Economists expected a growth of 20.6%.
The trade balance showed a surplus of 804.2 billion yen (7.55 billion euros), more than doubled compared to July 2009 against 458.8 billion expected by the market.
"Exports to all major regions, including the U.S., Europe and Asia, are supported.But in terms of outlook, the uncertainty has increased rapidly. I am particularly concerned about the negative impact of the strong yen, "Tatsushi Shikano said, senior economist at Morgan Stanley Mitsubishi UFJ Securities.
"The government should intervene on the exchange, even without the cooperation of other countries. He must show that Japan is concerned about the excessive force of the yen. But solo intervention would not be effective without further relaxation policy of the BoJ (Bank of Japan). "
The Japanese Minister of Finance, Yoshihiko Noda, once again clamped down Wednesday on the file exchange, saying it would act appropriately if necessary.
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