Japan Exports Fall for Fifth Straight Month

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

Japan Exports Fall for Fifth Straight Month
japan map 250x150 Japan Exports Fall for Fifth Straight Month[1]

Japan Map

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/03/japan-map_250x150.jpg
  2. fifth straight months: http://www.cnbc.com/id/49909716
  3. products from other nations: http://investorplace.com/2012/09/anti-japan-protests-lead-to-toy-tm-snany-pc/

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