TOKYO: Japan's exports slowed in July, official data showed Wednesday, adding to concerns about the fragile recovery in the world's number three economy as demand falls in neighbouring giant China.
The lacklustre figures come days after news Japan's economy contracted last quarter, boosting speculation the central bank will be forced to unleash more stimulus as Tokyo's "Abenomics" growth blitz stumbles.
While the value of Japan's exports rose 7.6 percent last month from a year ago, partly driven by rising vehicle shipments, the volume of goods slipped 0.7 percent from July 2014.
China-bound shipments were off 1.3 percent from 12 months earlier in volume terms, outstripping a 0.4 percent fall to the rest of Asia.
Despite a recovery in the US economy, a slowdown in China -- Asia's top economy and a major market for Japanese exporters -- has raised a red flag.
The central bank devalued the yuan last week, sparking concern China is growing more slowly than thought and prompting fears it could start a currency war in which countries compete to boost exports by cutting the value of their units.
"The most notable point is that exports are not growing -- the Japanese economy cannot rely on overseas demand for future growth," said Taro Saito, a senior economist at NLI Research Institute.
"While the United States and Europe are recovering compared with some other markets... China is dragging down exports."
The weak figures were part of broader picture that showed Japan's trade deficit narrowed a less-than-expected 72.3 percent in July from a year ago, as the cost of energy imports kept falling.
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