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Japan’s exports tumble but trade deficit narrows

Christian Fernsby ▼ | July 20, 2020
Japan’s exports plunged 15.4% in the first half of 2020 from the same period last year, the largest drop in 10 years and the latest sign of economic disaster in this pandemic year, Kyodo News reported from Tokyo.
268 billion yen ($2.5 billion)   Japan
Moreover, the world’s number three economy saw its balance of trade register a deficit of 268 billion yen ($2.5 billion) in June, compared with a surplus of 268.8 billion yen in June 2019. The deficit was far worse than the shortfall of 35.8 billion yen that the market had anticipated, economic newswire Trading Economics reported.

Topics: Japan

Still, with Japan being an export superpower, and its shipments being an indicator of global economic spending, further examination of data indicates that the worst may be past.

The June data marked an upward bounce from the deeper, redder figures of the two previous months, suggesting that the numbers have bottomed out and there may be brighter days ahead in H2 2020. Japan had registered a modest trade surplus of 4.95 billion yen in March, then a shock deficit in April of 930 billion yen, followed by another 833.4 billion yen deficit in May.

For the first six months of the year, Japan’s cumulative trade deficit soared to 2.24 trillion yen, compared with 895.9 billion yen in the same period of 2019, according to Trading Economics data.