2019.12.1803:29:00UTC+00Japan Exports Continue To Decline

Japan's exports decreased for the 12th consecutive month in November, official data showed Wednesday. Exports fell 7.9 percent on a yearly basis in November, the Ministry of Finance reported. This was slower than the 8.8 percent fall economists had expected.

Exports to the United States decreased 12.9 percent and that to China were down 5.4 percent.

At the same time, imports plunged 15.7 percent annually, which was faster than the expected decline of 12.3 percent.

Consequently, the trade deficit totaled JPY 82.1 billion compared to the forecast of JPY 350 billion.

Import volumes probably fell more sharply than export volumes in the fourth quarter so net trade should have provided a boost to GDP growth, Tom Learmouth, an economist at Capital Economics, said.

That is hardly a cause for optimism though as the weakness in imports reflects the softness of domestic demand following the sales tax hike, the economist noted.