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March exports up 4.3% yr/yr, slowing from Feb +6.5%
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China-bound exports down 4th mth despite lifting 'zero
corona'
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FY2022 trade deficit 21.7 trln yen - largest amount on
record
(Adds graphic)
By Tetsushi Kajimoto
TOKYO, April 20 (Reuters) - Japan's export growth slowed
in March, dragged down by a drop in China-bound shipments of
cars and steel in a slide that underscores concern about
slackening global demand amid higher interest rates and Western
banking-sector jitters.
Import growth outpaced exports in March, due to the hefty
cost of coal, crude and oil products, helping bring the annual
trade deficit in the world's third-biggest economy to a record
21.7 trillion yen ($161 billion). It exceeded the previous
record of 13.7 trillion yen in fiscal 2013.
The yen's depreciation by 16.5% from the same month a year
earlier also boosted the value of imports, rather than driving
up external shipments as Japanese exporters have shifted
production overseas during previous periods of yen strength.
Thursday's data, released by the Ministry of Finance, showed
exports rose 4.3% in March from a year earlier, logging a 25th
straight month of increase, led by shipments of U.S.-bound cars.
That was above economists' median estimate of a 2.6% gain, but
below a 6.5% increase in February.
Analysts say Japan's trade deficit will persist for the time
being as exports weaken.
"Chinese consumption lacks strength even after zero-COVID
curbs were lifted," said Takeshi Minami, chief economist at
Norinchukin Research Institute.
"Effects of the fully-fledged monetary tightening in the
West since last summer will play out in their economies, causing
Japan's exports to turn downward going forward."
A months-long global monetary policy tightening streak to
curb red-hot inflation has raised the spectre of a worldwide
recession, while the recent failure of two mid-sized U.S. banks
as well as troubles at Credit Suisse, have raised worries about
a credit crunch.
Thursday's data showed imports rose 7.3% in the year to
March, below the median estimate of an 11.4% increase and after
the prior month's 8.3% gain.
The trade balance in March came to a deficit of 754.5
billion yen versus the median estimate for a deficit of 1.29
trillion yen in March, after a shortfall of 897 billion yen in
February.
By region, exports to the United States grew 9.4% in the year to March, slowing from the 14.9% seen in the previous month. Exports to China, Japan's largest trading partner, fell 7.7% year-on-year in March, a fourth straight month of declines, the trade data showed. ($1 = 134.7400 yen) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Japan's exports and imports rise ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Tetsushi Kajimoto; Editing by Kenneth Maxwell and Shri Navaratnam)
