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Japan's export decline worsens in July

Japan's export decline worsens in July

Japan's exports fell 36.5 percent in July from a year earlier as an emerging rebound in global demand lost steam, the government said Wednesday.
In June, shipments from Japan posted their smallest decline in six months, driving the world's second-biggest economy out of a yearlong recession in the April-June quarter.
But the latest result, steeper than June's 35.7 percent fall, suggests that Japan's recovery may be fleeting without stronger overseas appetite for the country's cars and gadgets.
Exports have retreated every month since October and totaled 4.84 trillion yen ($51.4 billion) in July, according to the finance ministry's report. Imports plunged 40.8 percent to 4.46 trillion yen ($47.4 billion).
As a result, Japan posted a trade surplus of 380.2 billion yen ($4 billion).
Asia-bound shipments fell 29.9 percent, while those to China alone declined 26.5 percent, the ministry said.
The export slump to the U.S. worsened, down 39.5 percent compared with a 37.6 percent on-year fall in June. The overall value of U.S.-bound motor vehicle exports dropped 40.8 percent, while that of electric machinery was down 41.7 percent.
Japan's exports to the European Union decreased a steeper 45.8 percent.
The country's gross domestic product grew at a 3.7 percent annual pace in the second quarter, fueled by an improvement in exports. The expansion came after a deep, yearlong contraction, including a worst-ever drop in the final quarter of 2008, when the economy shrank at a 13.1 percent pace.
But economists have been cautious in their assessments, warning that the nascent recovery could be undermined by persistently weak domestic demand. Salaries are falling and the unemployment rate has risen to a six-year high of 5.4 percent.


Updated : 2021-05-08 02:32 GMT+08:00