Spurt in US-bound car shipments slows Japan export decline
TOKYO (JAPAN) – Japan’s slump in exports saw its slowest pace in September as US-bound vehicle shipments rose from lows caused by the pandemic. This indicates easing pressure on the world’s third-largest economy.
Compared to the same period a year before, exports dipped 4.9% in September, which is more than the 2.4% predicted by economists. The pace followed six months of double-digit slump, including a 14.8% drop in August.
With fewer exports of iron to Taiwan and ships to Panama, September marked the 22nd month of decline in export.
Economists said that the government should compile a third extra budget for the fiscal to help the ailing economy. There were two earlier budgets which helped fund $2.2 trillion in economic stimulus, such as cash payments to households and loans to small businesses.
Prime Minister Yoshihide Suga will order his government to come out with yet another stimulus plan as early as November to support consumer sentiment, which is facing risk from a new wave of infections.
The slowing decline in the pace of exports is one of the many signs of economic recovery, including the pickup in factory output.
“Production has recovered substantially, but as that’s mostly a rebound after sharp falls, the recovery pace will probably slow,” likely after year-end, said chief economist Yuichi Kodama at Meiji Yasuda Research Institute.