Mount Fuji, Japan

Japan Trade Balance September 2020

Japan: Contraction in exports continues to soften in September

Yen-denominated merchandise exports fell 4.9% in annual terms in September, on the heels of August’s 14.8% plunge. Nevertheless, September´s result marked the mildest contraction since February 2020. Meanwhile, imports plunged 17.2% on an annual basis in September (August: -20.8% yoy). As a result, the merchandise trade balance, recorded a JPY 0.7 trillion in September (August: JPY 0.2 trillion). Lastly, the trend improved, with the 12-month trailing merchandise trade balance recording a JPY 1.6 trillion deficit in September, compared to the JPY 2.4 trillion deficit in August.

Regarding the outlook and impact on economic growth, Hiromichi Shirakawa and Takashi Shiono, economists at Credit Suisse, commented:

“In our current estimate, Japan’s real GDP made a very strong rebound of around 24% qoq annualized in the 3Q 2020, helped by expansions of exports and domestic personal consumption, and today’s trade data were more or less consistent with this GDP estimate. Looking ahead, although we expect real exports to remain on a recovery path during the current quarter, we think that the recovery pace is likely to decelerate as the phase of rebound is over.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest