We could consider that Japan’s economy is currently going through a little turmoil. The country published its first monthly decline when it comes to exports in over two years, and it has been revealed that the prospects for economic growth had dimmed. The situation is caused by lower demands from Japan’s most important trading partners from China and other parts of Asia, according to CNBC.
Back in July, the exports in Japan have been through a decrease of 0.3% compared to a year earlier for the first time since early 2021. The Ministry of Finance from the Asian country didn’t hesitate to publish provisional data in order to shed light on the subject.
Sayuri Shirai, who is an economics professor at Keio University, explained for CNBC “Squawk Box Asia” the following, as CNBC also quotes:
Luckily at this moment, [the weakness in China exports] is completely offset by increase in exports to U.S. and Europe, but as you know, there are a lot of uncertainties with regard the U.S. and European economies.
Shirai also stated, as the same source quotes:
I think for Japan, Japan’s exports to China counts for 20% of its total and Asia, 50%, so we have to really watch what’s happening in China.
However, there are strong reasons to believe that Japan’s economy will toggle to a better situation than it is in the present. We’re talking about one of the most important producers of motor vehicles in the world, and let’s also not forget about the huge involvement of the country in high-technology consumer electronics.
Japan’s economy has been going through improvements in recent years, and the increase in foreign visitors to the country has also played an important role.