Imports, exports both fall as 754 bil. yen trade deficit logged in August


Japan posted another trade deficit with China and Europe due to the continued strength of the yen and the economic problems the countries face. Japan’s recovery may be delayed due to the fact China growth has slowed and they are Japan’s major exporter. The increase in exports, for the 7th straight time, by 10.9% to the U.S. helped lessen the trade deficit, but only so much can be done with exports to one country. China’s imports from Japan were down 9.9% which fell for a fourth straight time and Europe was down 22.9% also falling from previous declines. It is to early to make a ruling on the Senkaku islands, but it will be very interesting to see what effect the islands will play in the international trade between China and Japan.

The graph to the right shows the trade deficit that Japan has run in comparison to other countries.

3 thoughts on “Imports, exports both fall as 754 bil. yen trade deficit logged in August

  1. the prof
    Thanks for adding a graph and data!!
    In class we noted two approaches to thinking about trade (without by the way mentioning comparative advantage). One is a “micro” approach that focuses on income (Y, YROW, the other on macro “open economy” savings-investment balances, where ceteris paribus a change one place in an economy must be offset elsewhere.
    1. Has Japan typically run deficits?
      1. If so, wny (why not)?
      2. Has that been true of the US? Germany?
    2. Note that it’s too soon for the dispute over the Senkakus to show up in trade.
    3. In addition, is trade a substantial part of Japan’s economy?
      1. Has their success been “driven” by exports of cars and other goods?
      2. And how about services?
      3. What of capital flows?
  2. the prof
    Bloomberg today notes that Toyota and Nissan report August sales numbers in China don’t yet reflect any unrest, and they’re only now changing production plans as they have a better sense of actual sales. See Toyota joins Nissan in Cutting China Output… for details.
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