Japan's Exports and Imports Declined Last Year for the First Time in 3 Years... Exports to Korea Decreased by Over 10%

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's exports and imports showed a decline for the first time in three years, reported Nihon Keizai Shimbun on the 23rd. On an annual basis, Japan's trade balance recorded a deficit for the second consecutive year. Last year, due to Japan's strengthened export restrictions, relations between Japan and South Korea worsened, and exports to South Korea decreased by more than 10%.

According to the report, the trade statistics (preliminary figures based on customs clearance) announced by Japan's Ministry of Finance on the day showed that Japan's export volume last year was 76.9277 trillion yen, down 5.6% compared to the same period the previous year. During the same period, imports decreased by 5% to 78.5716 trillion yen due to falling international oil prices. As a result, Japan's trade balance recorded a deficit of 1.6438 trillion yen last year. On an annual basis, this marks a deficit for the second consecutive year. The deficit widened by 34.2% compared to the previous year.

Looking at exports by country, the impact of the US-China trade war caused exports to China to decrease by 7.6%. Exports of manufacturing equipment and electronic components decreased by 16.6% and 10.6%, respectively. Nihon Keizai reported that China's reduced production and investment dealt a blow to production facilities and component supplies exported from Japan to China. In addition, exports to Singapore decreased by 14.9%, and exports to Thailand decreased by 7.6%, with major ASEAN countries all experiencing declines.

Furthermore, due to the deterioration of Japan-South Korea relations, exports to South Korea decreased by 12.9% to 5.0441 trillion yen. In particular, food products decreased by 22.6%, and manufacturing equipment dropped by 49.7%. The United States, which ranked first among countries to which Japan exports last year, also saw a 1.4% decrease over one year as exports of automobiles and steel declined. Imports from South Korea also decreased by 9.1%, resulting in a 19.0% sharp decline in the trade surplus with South Korea.