Japan's exports continue to fall
Source: Agencies |
August 19, 2011, Friday
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Print Edition
Print Edition
JAPAN'S exports fell for the fifth straight month in July as the country contends with a strong yen and the continuing impact of the March earthquake and tsunami.
Exports fell 3.3 percent from a year earlier to 5.78 trillion yen (US$75.6 billion), the government said yesterday.
Exports are a key driver of the world's third-largest economy, and the country is hoping overseas demand will help it bounce back from the March 11 disaster. Data earlier this week showed Japan's economy is still mired in recession, shrinking for the third straight quarter in the April-June period.
The earthquake and tsunami damaged or destroyed factories in northeast Japan, which led to serious parts shortages for manufacturers in the auto and electronics industries. While the country has made progress in restoring production, it now faces new threats.
A surging yen, which has reached record highs against the dollar, is painful for Japan's exporters, hurting the bottom lines of companies like Nintendo, which makes 80 percent of its sales outside Japan. It is also forcing manufacturers like Panasonic and Hitachi to consider shifting more production overseas.
Japan intervened in currency markets earlier this month to try to reverse the yen's climb. The decision to sell the yen and buy the dollar worked initially, but the dollar has been weighed down by the dimming outlook for the US economy.
Monetary authorities could turn to intervention again if the yen continues to strengthen. A top Japanese financial diplomat, Takehiko Nakao, yesterday blamed speculators for the yen's sharp gains.
Exports fell 3.3 percent from a year earlier to 5.78 trillion yen (US$75.6 billion), the government said yesterday.
Exports are a key driver of the world's third-largest economy, and the country is hoping overseas demand will help it bounce back from the March 11 disaster. Data earlier this week showed Japan's economy is still mired in recession, shrinking for the third straight quarter in the April-June period.
The earthquake and tsunami damaged or destroyed factories in northeast Japan, which led to serious parts shortages for manufacturers in the auto and electronics industries. While the country has made progress in restoring production, it now faces new threats.
A surging yen, which has reached record highs against the dollar, is painful for Japan's exporters, hurting the bottom lines of companies like Nintendo, which makes 80 percent of its sales outside Japan. It is also forcing manufacturers like Panasonic and Hitachi to consider shifting more production overseas.
Japan intervened in currency markets earlier this month to try to reverse the yen's climb. The decision to sell the yen and buy the dollar worked initially, but the dollar has been weighed down by the dimming outlook for the US economy.
Monetary authorities could turn to intervention again if the yen continues to strengthen. A top Japanese financial diplomat, Takehiko Nakao, yesterday blamed speculators for the yen's sharp gains.
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