Japan’s export growth hits two year low on weak China demand By Reuters

By Tetsushi Kajimoto

TOKYO (Reuters) – 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 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)