Japan’s Exports Continue to Outpace Imports

December 12, 2007

By Robert Brusca

· Japans exports and imports each show generally declining trends. Imports are up by just 4.4% year/year while exports are advancing at a pace of 11.4%. Japan’s services deficit is shrinking. Its good surplus and current account surplus are each widening. The current account surplus is widening in both dollar and yen terms (see table). 

· Recent macroeconomic data make it clear that Japan’s economy is slowing. This is reflected in the import slowing that is in progress. Japan’s imports fell by a sharp 6.3% in August then by 0.1% in September before rebounding with a rise of 0.8% in October. Import weakness is likely a reflection of the weakness in domestic demand. 

Japan Current Account Trends
 

In period level of % change

Average in period/or % change
 

Oct-07

Sep-07

Aug-07

3-Mo

6-Mo

12-Mo

12-Mo Prev
Current Account in $, Millions

$ 22,135

$ 19,489

$ 18,789

$ 20,138

$ 18,303

$ 17,425

$ 14,049

In Yen, 100 Millions

 

 

 

 

 

 

 

Overall Balance

25,648

22,420

21,932

23,333

21,680

20,641

16,375
Services Balance

(365)

(1,546)

(2,286)

(1,399)

(1,790)

(1,929)

(1,789)

Balance on Goods

13,141

10,704

14,404

12,750

10,877

10,651

7,471

 

% m/m

% SAAR

Export Goods %

4.4%

-5.4%

3.4%

8.1%

16.0%

11.8%

24.4%

Import Goods %

0.8%

-0.1%

-6.3%

-18.8%

10.9%

4.4%

16.4%

Prices in %, SAAR

 

 

 

 

 

 

 

Export Prices

0.8%

-0.7%

-3.2%

-16.7%

-1.5%

-0.1%

4.7%

Import Prices

4.4%

-1.4%

-2.5%

-2.1%

11.1%

7.5%

20.5%

Memo: Yen/$, AVG, Level

115.87

115.04

116.73

115.88

118.75

118.69

116.54

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