Japan's export growth hits two year low on weak China demand
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2023-05-18 08:51
By Tetsushi Kajimoto TOKYO Japan's export growth hit its weakest pace in more than two years in April

By Tetsushi Kajimoto

TOKYO Japan's export growth hit its weakest pace in more than two years in April as China-bound shipments slumped amid lingering worries about faltering global economic demand.

Exports rose 2.6% in April from a year earlier, Ministry of Finance data showed on Thursday, slower than a 3.0% increase expected by economists in a Reuters poll and a 4.3% rise in March. That marked the weakest gain since February 2021 when exports declined 4.5%.

The world's No. 3 economy emerged from recession in the first quarter, helped by a boost in consumer spending and tourism following the end of COVID-19 pandemic restrictions, but weak exports are weighing on factory activity and hampering a broader recovery.

Exports slumped 4.2% in January-March, the first decline in six quarters.

By destination, Japanese exports to China, the country's largest trading partner, dropped 2.9% in April year-on-year, dragged by declines in cars, car parts and steel shipments. It followed a 7.7% decline in March and marked a fifth straight month of falls.

Imports fell 2.3% in April, much bigger than the median estimate for a 0.3% decrease and the first annual decline in 27 months, as prices of crude oil and other commodities fell.

The trade balance came to a deficit of 432.4 billion yen ($3.20 billion), versus the median estimate for a 613.8 billion yen shortfall.

($1 = 135.0500 yen)

(Reporting by Tetsushi Kajimoto; Editing by Sam Holmes)

Tags economy trade japan epus finance