One of the world’s biggest exporters, Japan, released data that showed a drop in its exports for the 10th consecutive month. Japanese exports include optical lenses, ships, automobiles, and high-end machinery. Two major buyers of Japanese products, China and the United States, saw a decline in demand for Japan’s exports.
Data from the Japanese Ministry of Finance revealed a fall of 6.7% in exports to China over the past year and a drop of 7.9% to the U.S. over the same period.
Exports from Japan are considered indicative of global growth, since many of the country’s exports are used for manufacturing and capital expansion. Weaker demand from expanding countries may signal a contraction in global growth.
In its most recent global economic report, the IMF cited a broad-based global slowdown in manufacturing and global trade. Factors affecting the slowdown include higher tariffs, trade policy uncertainty and a drop in demand for capital goods. Consequently, Japan is directly affected by these dynamics, as the country is a major supplier of capital products and goods worldwide.
Source: IMF, Japanese Ministry of Finance
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