as of government figures on Thursday shows were both exports and imports in July so strong not seen for nearly seven years more. Exports fell compared to the same month last year by 14.0 percent, while imports collapsed by 24.7 percent. These are the strongest setbacks since the end of 2009. Analysts had on average declines by 13.7 per cent (exports) and 20.0 percent (imports) expected.
The exports fell across the board from weak. Exports to other Asian countries decreased as well as in the US and in the European Union. A key reason is the strong currency of Japan. The high yen expensive Japanese goods for many foreign buyers and thus dampens the demand. In the second quarter, as the Japanese economy stagnated, the growth was significantly impacted by the foreign trade.
The sharp drop in imports suggest meanwhile point to a weak domestic demand. Growth in the second quarter was indeed supported easily by private consumption, the longer comparing the consumption remains weak. Experts attribute this primarily to the continued subdued wage developments in Japan. Due to the weak economic development Prime Minister Shinzo Abe has announced a stimulus package. It is believed that the central bank supports this course by even looser monetary policy.