Japan‘s Export Decline Slows in August, Signaling Potential Stabilization
TOKYO – Japan’s exports fell for the fourth consecutive month in August, but the pace of decline eased unexpectedly, offering a glimmer of hope for the world’s third-largest economy.overall shipments decreased by 0.1% year-on-year, a notable improvement from July’s 2.6% contraction and beating economists’ forecasts of a 1.9% drop,according to data released Friday.
Imports also declined at a slower rate,falling 5.2% compared to a 7.4% decrease in July.
A rebound in exports to Asia, which climbed 1.7% from the same period last year, and strong growth in shipments to Western Europe – up 7.7% – helped to mitigate a sharp downturn in exports to the United States.
Exports to the U.S.plummeted 13.8% year-on-year, worsening from the 10.1% contraction recorded the prior month. This decline followed a trade agreement reached with Washington in late July that lowered tariff rates on Japanese goods to 15% from 25%.
Automobile shipments to the U.S. continued to struggle,falling 28.3% year-on-year, a slight improvement from July’s 28.4% decline. Autos represented Japan’s largest export category to the U.S. in 2024.
Exports to mainland China decreased 0.5% year-on-year, while shipments to Hong Kong surged 14.4%. china remains Japan’s largest single-country trading partner.
The trade data arrives ahead of the Bank of Japan’s interest rate decision later Friday, with economists widely anticipating the central bank will maintain it’s current rate of 0.5%.
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