JAKARTA (TheInsiderStories) – Japan trade surplus shrinking to JPY590 billion (US$5.5 billion) in June 2019, from a year ago surplus of JPY728 billion caused of weak global demand and United States – China trade war, the ministry of finance reported on Thursday (07/18).
The data showed, exports declined for seven consecutive months, while import fell for the second month. The ministry reported, Eexport fell 6.7 percent to JPY6.58 trillion, after a 7.8 percent decline in May.
Sales were mainly dragged down by an 8.0 percent in machinery goods (20 percent of total exports), compared with a decline of 13.1 percent in the previous month. Mainly dragged down by a 22.2 percent decline in metalworking machinery.
The decline also occurred in raw materials products by 11.7 percent, electric machinery 9.3 percent, and manufactured goods 8.6 percent. In contrast, food exports actually rose by 7.9 percent.
Among the main trading partners, Japan‘ most falling exports occurred to Australia which amounted to 18.7 percent, followed by South Korea 14.8 percent, then China by 10.1 percent, and Singapore 7.9 percent. In contrast, Japan’ sales to its allies’ US, rose 4.8 percent.
Japan’ exports to China fell 10.1 percent to mark the fourth monthly decline in a row, as Chinese economic slowdown had an impact on the prospects of its neighbors. Data showed equipment shipments of chip makers in China fell 27.1 percent, while electronic components fell 21.3 percent, although car exports increased 78.7 percent.
Japan‘ imports also fell 6.7 to JPY6.00 trillion from a year ago and following a 1.5 percent decline the previous month. Purchases were dragged down by a decrease in raw materials by 10.8 percent.
Among the main trading partners, the most falling Japanese imports came from China by 5.3 percent (because shipments of smartphones and other communication equipment fell 24.8 percent). While, from America 2.5 percent and Western Europe 2.4 percent.
Overall, these figures illustrate how the deteriorating external environment affected the Japan‘ economy. One consensus estimate predicted the Japanese economy shrank 0.2 percent in the quarter in the April-June period, based on a survey conducted by the Japan Economic Research Center.
US$1 = JPY0.0093
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