Mount Fuji, Japan

Japan Trade Balance August 2020

Japan: Exports decrease at milder rate in August

Yen-denominated merchandise exports sank 14.8% year-on-year in August, moderating from July’s 19.2% drop. August´s outturn marked the softest decline since March 2020. Meanwhile, imports slid 20.8% over the same month last year in August (July: -22.3% yoy). As a result, the merchandise trade balance inched up, recording a JPY 0.2 trillion surplus in August (July: JPY 0.0 trillion). Lastly, the trend improved, with the 12-month trailing merchandise trade balance recording a JPY 2.4 trillion deficit in August, compared to JPY 2.8 trillion deficit in July.

Regarding the ameliorating export panorama, analysts at Nomura commented:

“Real exports were up for a third straight month in August. We think a clear bottom in exports is coming into focus in Jul-Sep. […] Looking ahead, however, we think that the rise in exports will get smaller once the pent-up demand from the periods of restrictions on economic activities, such as city lockdowns, dies down. In fact, the extent of the m-m rise in exports to the US in August was down from July. We also think that it will be difficult to quickly raise the level of economic activity in the near term due to concerns about COVID-19 picking up again. We continue to forecast a moderate rate of recovery in overseas demand.“

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