Daily Management Review

Japan's exports keep falling for 14th consecutive month


Orders for manufacturing equipment in Japan have been falling at the fastest pace since 2018. Japan's exports showed a decline for the 14th consecutive month.

Exports in January fell by 2.6% year on year, according to data from the Ministry of Finance of Japan. Economists surveyed by Reuters on average predicted a 6.9% drop in exports after a December decline of 6.3%.

Shipments to Asia, which account for more than half of Japan’s total exports, fell by 3.2% in January on an annualized basis. The decline was recorded for the 15th month in a row.

Exports to China, Japan's largest trading partner, fell by 6.4% year on year amid declining supplies of chemicals, car parts and electronic components.

Exports from Japan to the United States declined for the sixth consecutive month - by 7.7% in annual terms, which was facilitated by a drop in car supplies by 18.5%.

Japan's total imports in January fell by 3.6% year on year instead of the expected decline of 1.3%.

Separate data showed that the main orders for manufacturing equipment in Japan in December fell by 12.5% in monthly terms, while economists forecast a decrease of 9%.

Data highlights external pressure on the world's third largest economy.

In the IV quarter of 2019, Japan's GDP decreased by 6.3% compared to the same period in 2018. The decline was the highest since the second quarter of 2014.

Haruhiko Kuroda, Head of the Bank of Japan, said this week that the central bank will consider the possibility of further easing its monetary policy if the outbreak of the coronavirus COVID-19 poses a significant threat to the economy.

source: asia.nikkei.com