Japan exports underwhelm in June, global weakness drags on economy

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Japan exports underwhelm in June, global weakness drags on economy
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TOKYO : Japan's annual exports grew much-less than expected in June, highlighting weak global demand that continues to undercut the post-COVID recovery in the world's third-biggest economy.The risk of a world recession amid sweeping monetary policy tightening since last year has cast a pall over export-le

TOKYO : Japan's annual exports grew much-less than expected in June, highlighting weak global demand that continues to undercut the post-COVID recovery in the world's third-biggest economy.

The trade data, released by the Ministry of Finance on Thursday, showed exports rose 1.5 per cent year-on-year last month, below the 2.3 per cent gain expected by 15 economists in a Reuters poll, but faster than a 0.6 per cent rise in May.Imports fell 12.9 per cent year-on-year in June, versus the median estimate for a 11.2 per cent decrease. The decline in the value of imports, caused by drops in crude, coal and liquefied natural gas, should help ease concerns about rising costs of purchases.

A weak yen and surging import costs have led to several months of trade deficits in Japan, another challenge for policymakers hoping to shore up a fragile recovery following the end of COVID curbs.

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