MNI BRIEF: Japan Exports Continue to Rise at Slower Pace

Exports rose 2.6% y/y in April, the 26th consecutive rise, but slowed from March's 4.3% gain, Ministry of Finance data showed Thursday.

The deceleration followed a decline in overseas demand. The data was in line with the Bank of Japan’s view that exports would be flat due to the impact of the slowing global economy. Bank officials expect the U.S. economy to slow from mid-2023, decreasing Japan’s exports and production.

Exports to China, Japan's largest trading partner, fell 2.9% in April – the fifth straight drop following March's 7.7%, with auto exports recording a 27.3% drop, narrowing from March's 62.7% decline. U.S. exports rose 10.5% for the 19th straight rise following March's 9.4% increase, with auto exports rising 23.1% (vs. +59.9%). Auto exports overall rose 29.2% y/y in April, slowing from 38.3% in March, illustrating the impact of supply-chain easing, but decreasing levels of car demand.

Japan posted its 21st straight trade deficit of JPY432.4 billion in the wake of high resource prices, which followed March's JPY755.1 billion level.