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Japan exports fall amid slow recovery from pandemic downturn

Cars are parked to be exported at Yokohama port, near Tokyo on Sept. 29, 2020. The drop in Japanese exports diminished last month, according to government data released Monday, Oct. 10, 2020, underlining how the blunt of the trade damage from the coronavirus pandemic may be gradually easing. (AP Photo/Koji Sasahara) (Koji Sasahara, Copyright 2020 The Associated Press. All rights reserved.)

TOKYO – Japan's exports fell at a slower pace in September in a sign that trade damage from the coronavirus pandemic is easing, according to Finance Ministry data released Monday.

The report showed Japan’s exports in September declined 4.9%, better than the nearly 15% drop in August. The nation’s imports fell 17.2% overall, compared with 20.8% in August.

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Exports to China jumped 14% while shipments to the U.S. inched up 0.7%, in another possible sign of a gradual rebound. By sector, computer exports to the world surged nearly 45%.

Japan’s export-reliant economy has sunk into recession, with three straight quarters of contraction through June, as the outbreak slammed business activity and stifled trade.

But a recovery in China, where COVID-19 emerged late last year, and recoveries in some other Asian countries are helping Japan regain momentum.

Junichi Makino, analyst at SMBC Nikko Securities, noted that auto exports were recovering as global economies rebounded, especially in Europe. He said exports overall had recovered nearly to what it had been before the pandemic.

The ministry data showed transportation equipment in general, including vehicles, motorcycles and planes, was still declining, down 7% compared to a year ago.

Prime Minister Yoshihide Suga, who took office a month ago, left Sunday for Vietnam and Indonesia, where virus cases are relatively low, to drum up business and trade.

His predecessor, Shinzo Abe, had tried to sustain economic growth with his “Abenomics” package of programs based on zero interest rates and curtailing deflation.

Suga, also from the governing Liberal Democratic Party, is expected to continue those policies.

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Yuri Kageyama is on Twitter https://twitter.com/yurikageyama


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