Japan export growth slows
25 Nov 2010
Japan has reported slower growth in exports for October than forecast indicating a weakening of the growth engine that was mainly responsible for leading the nation's recovery out of the 2008 global recession.
A finance ministry report said that trade in the October quarter failed to contribute to economic expansion, the first time since the global financial crisis.
Exports were up 7.8 per cent from a year earlier, the finance ministry said in Tokyo today.
The yen's relentless rise against the dollar this year has hit earnings of Japanese exporters and manufacturers. The currency has gained more than 11 per cent this year. Analysts anticipate a double hit with a slump in domestic demand impacting the economy along with a decline in exports.
Industrial production has fallen for four months as auto manufacturers cut back on production as stimulus measures announced earlier this year were withdrawn.
''Exports will probably expand at a modest pace, and we can expect production to be weak for some time,'' Bank of Japan board member Seiji Nakamura said in a speech today. He attributed this to a stronger yen and slower global growth.
