Japan's exports fall by the most since 2021 as demand weakens

Japan's exports dropped by the most since February 2021 in September, sapping momentum from the country's economic recovery as global demand weakened.

- 

Exports declined 1.7 per cent from a year ago led by cars, mineral fuels and construction machinery, and slipped to negative growth for the first time since November 2023, the Ministry of Finance reported on Oct 17. The reading missed economists' forecast of a 0.9 per cent gain.

Imports rose 2.1 per cent, led by electronic calculators and semiconductor parts, and slightly missing the consensus estimate of a 2.8 per cent gain, while the trade deficit narrowed to 294.3 billion yen (S$2.6 billion).

The Oct 17 data indicates that Japan's economy likely received limited support from external demand in the third quarter amid a global slowdown. Japan's economy expanded in the three months through June, partly driven by a rise in private consumption, though the growth appeared to be a temporary rebound after a deep contraction in the prior period.