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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
