Japan Trade August 2016


Japan: Strong yen continues to weigh on trade in August

September 21, 2016

In August, nominal exports valued in yen declined 9.6% over the same month last year, which followed July’s nearly seven-year low of 14.0%. The fall was steeper than the 4.7% drop that market analysts had expected. A strong yen and subdued global demand are adding pressure on Japan’s all-important external sector.

Imports contracted 17.3% annually in August, which was above July’s 24.7% drop. The print, however, exceeded the 16.6% decrease that market analyst had expected. A strong yen and low energy prices continue to weigh on imports.

As a result, the trade balance recorded a JPY 19 billion deficit (USD 184 million) in August. The reading was up from the JPY 568 billion deficit registered in the same month of the previous year. In the 12 months up to August, the trade surplus rose to JPY 2.0 trillion, which was up from the JPY 1.5 trillion recorded in the previous month and represented the highest reading since June 2011.

Author: Ricard Torné, Lead Economist

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Japan Trade Chart

Japan Trade12m August 2016

Note: 12-month sum of trade balance in USD billion and annual variation of the 12-month sum of exports and imports in %.
Source: Ministry of Finance and FocusEconomics calculations.

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