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Japan exports

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Japan’s exports sadden as they increased less than expected in April while the country’s trade deficit expanded significantly in the month. The Japan’s economy has a long way ahead to finally revive, but it seems that the weaker yen has not started bearing fruits yet. The disappointing results for April were mainly driven by weak demand from key trading partners, including the European Union and China.

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Japan had been waiting for new positive signs and the newest data did not disappoint, showing that country’s exports rose in March on the weak yen. Not only did the figures exceed analysts’ estimates, but they also indicated that the Prime Minister Shinzo Abe’s steps started bearing fruits. Apart from a visible increase in Japan’s exports, the country also witnessed a decrease in the trade deficit in the month of March as Japanese products were more attractive and competitive.

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The Japan’s Ministry of Finance informed that the annual trade deficit in 2012 increased to record $78 billion as the country saw its exports continue to decline due to a territorial dispute with China and prolonged crisis in Europe. The new Prime Minister, Shinzo Abe, tries to introduce new measures aimed at boosting the struggling economy.

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On the 28th of December, government data showed that Japan’s industrial output decreased as much as 1.7 percent in November, indicating the weakness of the world’s third economy. Even though some indicators were promising, the new government of Shinzo Abe will have to face many challenges to bolster the Japan’s economy which is still struggling amid the Japanese-Chinese territorial dispute.

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Japan’s exports dropped at the fastest pace since the post-earthquake slump in the year to September. The fall in Japan’s exports was affected by a global economic slowdown, the yen’s strength and a territorial dispute with China.

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The month of July proved to be a time of crisis as Japan exports took the greatest slump in a period of over six months as exports to Europe, which is currently burdened with debt, and exports to China, suffering from a slow growth rate, fell considerably. This resulted in growing fears regarding the global demand following a chain of disappointing trade reports from the export engines present in the continent of Asia.

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