Japan Exports Fall for Fifth Straight Month

by Christopher Freeburn | November 21, 2012 9:23 am

The Japanese economy is feeling the pain of a slowing world economy — and Chinese anger over a territorial dispute. Japan’s export fell for the fifth straight months[2], dropping 6.5% in October, compared to the same time last year. Economists had expected a decline of just 4.9%, Reuters noted.

Falling exports have led to the fourth consecutive monthly trade deficit — meaning Japan is importing more than it exports. Japanese exports have been battered by the rising value of the yen, which places its goods and services at a price disadvantage, and soft demand in Europe and North America.

Also driving the drop in Japanese exports is a consumer boycott in China. A dispute over the Senkaku islands, a chain of tiny, barren islands in the East China Sea, inflamed nationalist sentiment in China, leading many Chinese consumers to look to products from other nations[3].

Japan’s exports to China tumbled 11.6% in October compared to last year. But that was less than the 14.6% year-over-year declined registered in September, suggesting that Chinese anger may be cooling.

Source URL: http://investorplace.com/2012/11/japans-exports-post-fifth-consecutive-monthly-drop/
Short URL: http://investorplace.com/?p=264771

---