Econintersect: October produced a decline in Japanese exports of 6.4% year-over-year in October. The drop was much sharper than the consensus of economists, which had been 4.9%. This was the fifth month in a row that exports have declined. The weakening global economy contributed to the continuing decline for Japan's export dependent economy. But the largest contributor to the decline came from China, for which exports declined by 11.6% (annual rate) in October, following a 14.6% drop in September. The continued weakness in exports fans new concerns about a Japanese recession.
The third quarter saw a 3.5% annual rate of decline for Japan's GDP. Bloomberg reports:
“There’s no doubt that Japan’s economy is already in a recession,” said Kiichi Murashima, chief economist at Citigroup Inc. in Tokyo. “Political pressure for further monetary easing is building, and we expect the BOJ to take additional measures in January.”
In 2012 only April, May and June have had exports higher than the corresponding month in 2011.
Note: The latest data has not been added to the above graphic from Trading Economics.
- Japan exports drop again, adds to recession worry (Kaori Kaneko, Reuters, 21 November 2012)
- Japan: GDP Contraction (GEI News, 11 November 2012)
- Japan’s Exports Reach Three-Year Low as Recession Looms: Economy (Andy Sharp and James Mayger, Bloomberg, 21 November 2012)
- Japan Exports (Trading Economics, 20 November 2012)