Japan posts trade deficit in 2018, December exports slump to the weakest in 2 years
Japan posted a trade deficit of ¥1,203 billion for last year, reversing from the trade surplus in the previous two years.
Trade tensions between China and the United States (US), two of Japan’s biggest trading partners caused Japan to post a trade deficit for 2018, its first drag since 2015, data from the finance ministry showed on Wednesday. Exports in December for Japan also fell the most in more than two years, dragged down by weak global demand.
Japan posted a trade deficit of ¥1,203 billion for last year, reversing from the trade surplus in the previous two years. Annual growth in exports for the full year eased to 4.1% from 11.8% in 2017.
Exports to China gained by 6.8%, slower compared to the previous year’s 20.5% growth while shipments to the US eased to 2.3% from 6.9%.
For the month of December, the country posted a trade deficit of ¥55.3 billion, reversing from a ¥356 billion surplus a year ago.
Exports for the month contracted by 3.8% from a year earlier, which was worse than the 1.9% drop economists had expected. The fall was the sharpest year-on-year contraction since October 2016.
The trade tensions faced between the US and China has created a cascading effect to its exporting partners and production lines across Asia. Japan’s shipments to Asia, which amounts to more than half of overall exports, fell by 6.9% in December.
The country’s central bank is expected to maintain its massive monetary stimulus, and revise its growth and inflation forecasts for the year, on the onset of the weak export figures.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.