July export volume in Japan edged up 0.3% from June, after a 2.3% rise in June.
Advertisement
Japan had a merchandise trade deficit of 268.055 billion yen in July, the Ministry of Finance said on Wednesday. However, imports have not fallen as much as expected, with weakness in the yen countering that trend.
China’s central bank devalued the yuan last week, sparking concern the economy 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.
While exports to China were sluggish in the past three years due to political tensions over disputed islands, they fell further this year as China’s economic growth decelerated.
At the same time, the U.S.is importing less than in the past as consumers tighten their belts in an era of greater “fiscal discipline”.
Japan’s exports to the key North American market were up 18.8 percent in July, the 11th consecutive monthly increase while exports to Asia including Tokyo’s largest trading partner China rose 6.1%. But economists had forecast an even bigger drop.
Advertisement
Imports held up. Import volume increased 2.2% after a 2.7% rise in June. While weak domestic demand was the biggest hindrance, exports also were a drag on growth.
