Ministry of Finance: Exports up 8.3% in April, cooled off slightly from March

May 24, 2007
By Ken Worsley

This afternoon, the Ministry of Finance released provisional trade statistics for April 2007, and Japan’s exports increased 8.3% compared to April of last year. The rate, of increase, however, is lower than the 10.3% year-on-year growth seen in March. This is the first time that the growth rate has slowed in two years.

Although this has happened slightly earlier than we predicted, it is not completely out of the blue. A slowdown in spending in the US has been anticipated, and that contributed to the slower export growth in April. Exports to the US dropped 4.8%, their largest fall since May 2004.

According to the statistics, however, exports to all other regions increased, meaning that spending in Europe and China are continuing to support Japan’s export growth. Exports to Asia grew by 11.1%, with shipments to China rising 16.8. Exports to the European Union also grew at a strong pace, reaching 9.7%.

April and May, however, are not typically hot months for exports. The true test for Japan’s exporters will come this summer and fall. June, July, September and October tend to be amongst the busiest months for shipments, as is March.

Today’s question: Will export growth to China be maintained after next year’s Olympics are over?

Filed Under Economic Reports, Export & Import