Fri, 29 May 2020

Japan joins China with sliding export sales

By Jay Jackson, Philadelphia News.Net
18 Mar 2019, 16:46 GMT+10

TOKYO, Japan - Falling exports threaten the Japanese economy, particularly at a time when Chinese exports too are in a state of decline.

Following on from China's shock 20.7% drop in exports last month, Japan on Monday announced its exports dropped 1.2% in February, against expectations of a 0.09% decline.

While exports to the U.S. and Europe were unchanged, it was the Asian region where demand has been slowing.

Japan's central bank has been accommodative for more than two decades, keeping the Japanese yen weak for that period of time. Unfortunately it has done little to resuscitate the economy.

The U.S.-China trade stalemate, and the Brexit stalemate are taking a toll on the economies of China adn Japan.

"Exports will remain in a declining trend for the time being, which could curb capital spending and wages.Domestic economy will face a severe situation ahead of October's sales tax hike." Takeshi Minami, chief economist at Norinchukin Research Institute said Monday.

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