The trade deficits the world’s third-largest economy has marked in recent years because of that is a contrast to its past decades-long, often criticized reputation as a giant exporter.
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But figures on Monday showed that Japan’s economy slipped back into recession for the second time in Abe’s current tenure as premier. Nonetheless, the central bank is widely expected to keep monetary policy steady at its rate review that ends on Thursday.
Exports to the United States were up for October, climbing 6.3 percent.
Analysts expect a modest rebound in the economy over the current October-December quarter.
“The data probably came as neutral to the BOJ’s outlook”.
Exports slid 2.1% from a year earlier to Y6.544 trillion in October, the first decline since August 2014, indicating that a sharp economic slowdown in China and sluggish demand elsewhere in Asia outweighed the effects of a weaker yen that has inflated the value of trade revenue in Japan’s currency.
Despite the growth in auto and computer exports, overall exports fell 2.1 percent in October from the previous year, but that drop was overshadowed by a decline in imports of 13.4 percent, according to the Finance Ministry’s preliminary report.
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Japan’s trade balance returned to a surplus after 6 straight months of deficit, as imports fell more than the decline in exports. Japan is thriving as an exporter of various goods to China, which in turn makes products that get exported to the USA, he said in a report.
