Economy - - Dec 19,2018
Japan has been facing serious economic turmoil with export growth deteriorating in November as a result of trade-war risks cloud the outlook.
For the month of November, Japan’s export growth has seen a major downfall as shipments directed to the United States and China deteriorated abruptly. This impact is directly associated with the slowing external demand as well as Sino-US trade quarrel.
According to UOB Global Economics and Markets Research, Japan’s exports crawled up a mere 0.1% Y-o-Y in the previous month; it is significantly lower as compared to the 8.2% rise seen in October.
Toru Suehiro, senior market economist at Mizuho Securities said: "Japan's export volume is slow to expand against the backdrop of global economic slowdown".
He further added that uncertainty linked to the world economy stays strong, while Japan's exports would scuffle to acquire pace for the time being.
In the recent past, US President Donald Trump has condemned Japan and China on trade-related matters, with threats to levy steep tariffs on the import of Japanese automobiles that form almost two-thirds share of Japan's annual trade surplus with America.
Natural disasters have also played their role in contracting Japan's economy in the last four years, and the third quarter seems to have uncovered the craters in supply chains and factory activity.
Furthermore, the slump in shipments to China is distressing since Beijing's unsettled trade dispute with the US intimidates heavy damage to global supply chains and hollow corporate profits across several economies including Japan, Mexico and Australia.
The overall imports to Japan increased by 12.5 percent in 2018 until November, bumpily in line with the average estimate.
Hence, the trade equilibrium came to a shortfall of 737.3 billion yen counting to the second straight month of deficits.