Japan: Exports decline at a quicker pace in August
Yen-denominated merchandise exports decreased 0.8% annually in August, on the heels of July’s 0.3% fall. August’s figure marked the largest fall since February 2021. Meanwhile, merchandise imports dived 17.8% over the same month last year in August (July: -13.6% yoy), marking the weakest result since August 2020.
As a result, the merchandise trade balance deteriorated from the previous month, recording a JPY 0.9 trillion deficit in August (July 2023: JPY 0.1 trillion deficit; August 2022: JPY 2.8 trillion deficit).
Analysts at Nomura said:
“After adjusting for inflation and seasonality, we estimate that real exports fell by 6.4% m-m in August, with growth turning negative for the first time in three months. The Jul–Aug average is 0.2% lower than Apr–Jun average.”