ZCZC
BCN-14
JAPAN-ECONOMY-TRADE
Japan logs first trade deficit since 2015
TOKYO, Jan 23, 2019 (BSS/AFP) – Japan logged a trade deficit last year for
the first time since 2015, with exports shrinking amid tensions between the
country’s two biggest trading partners — China and the United States.
Japan logged the deficit of 1,203 billion yen ($11 billion) in 2018 after
two years of surplus, with annual growth in exports slowing to 4.1 percent
from 11.8 percent in 2017, according to the finance ministry data released
Wednesday.
Exports to China increased 6.8 percent, markedly slower than the previous
year’s 20.5 percent growth.
Growth in shipments to the United States slowed to 2.3 percent from 6.9
percent.
“US-bound exports were not strong but still solid, whereas shipments to
Asia, notably to China, slowed down,” said Takeshi Minami, chief economist at
Norinchukin Research Institute.
“US-China trade tensions should be blamed for that,” he told AFP.
The trade war negatively affected Japanese companies’ exports of parts and
devices for assembly of finished products at Chinese factories as well as
exports from China by Japanese businesses operating there, he said.
“If the global economy carries on as it is now, we cannot expect growth in
exports,” Minami said.
He added that Japan’s trade figures could worsen in the coming months.
Japan is to hike its sales tax from the current 8.0 percent to 10 percent
in October, which could mean a spike in consumer demand before the new rate.
“This could boost imports until September, which could expand Japan’s
deficits,” he said.
BSS/AFP/HR/1000