Econintersect: In July 2013 Japan recorded the third worst monthly trade balance deficit on the 34-year data history. Rising energy cost was the primary driver of the 19.6% year over-year increase in imports which fed a ¥1.02 trillion ($10.5 billion). Season adjustment brought the imports number down to $9.7 billion. Exports surged by 12.2% for July (Y-o-Y), up from 7.4% rise in June.
Other facts about the July data for Japan:
- This was the 13th consecutive month of trade deficit.
- This was the 18th trade deficit in the last 22 months.
- All three of the worst trade deficits in 34 years have occurred since February 2012.
- Month-over-month exports were up 4.5%.
- Month-over-month imports were up 8.6%.
Analysts were encouraged about the state of the global economy because Japan’s exports grew year over year to all three of its major trading partners: The U.S. (18.8%), European Union (16.6%) and China (9.5%).
Sources:
- Japan exports rise at fastest in 3 yrs, weak yen paying off (Reuters, CNBC Money Control.com, 19 August 2013)
- Japan’s Exports Rise Most Since ’10 as Deficit Swells: Economy (James Mayger and Andy Sharp, Bloomberg, 19 August 2013)
