–Imports Mark 9th Straight Y/Y Fall on Lower Energy Prices
–Exports to China Post 1st Rise in 13 Months, Climb to 2nd Highest on Record
–Exports to US Hit Record High; Those to EU Rebound after 1st Drop in 33 Months in November
–Japan 2023 Exports Also Reach Record High, Trade Deficit Cut in Half
By Max Sato
(MaceNews) – Japanese export values rebounded 9.8% on year to a record high in December, led by automobiles as largely expected, after marking their first drop in three months in November with a slight 0.2% dip, but demand for semiconductor-producing equipment remains sluggish amid slower global growth, data released Wednesday by the Ministry of Finance showed.
Import values fell for the ninth straight month as energy prices remained below year-earlier levels and demand for Covid drugs waned but the pace of decrease decelerated to 6.8% from 11.9%. The median forecast was a 5.2% drop.
The trade balance recorded a surplus of ¥62.1 billion for the first positive figure in three months, coming in firmer than the median forecast of a deficit of ¥98.9 billion (forecasts ranged from a deficit of ¥205.6 billion to a surplus of ¥81.7 billion). It compared to a revised ¥780.35 billion deficit in November and a ¥1.50 shortfall a year earlier.
Shipments to China, one of the key export markets for Japanese goods, posted their first year-over-year increase in 13 months in December and reached the second highest on record. The world’s second largest economy has been struggling to recover under the wight of property market problems.
Japanese exports to the European Union rebounded after showing their first year-over-year drop in 33 months in November while exports to the U.S. remained strong, rising to a record high.
For the whole of 2023, Japanese exports posted the third straight annual increase rising 2.8% to a record high, following a 18.2% rise in 2022. By contrast, imports marked the first drop in three years, down 7.0% after surging 39.6% in the previously year. The trade balance recorded a deficit of ¥9.29 trillion for the third consecutive shortfall, but it narrowed to less than a half of a ¥20.3 trillion deficit in 2022.
The key points from the MOF’s Trade Statistics:
* Export values rose 9.8% on year in December to a record high of ¥9.65 trillion, surpassing the previous record of ¥9.20 trillion hit in September 2023. The pace of increase in exports have slowed from double-digit percentage gains seen in 2022 as they have already recovered from the pandemic slump. The latest figure was slightly above than the median forecast of a 9.0% rise (forecasts ranged from 8.1% to 13.4% gains). The increase was led by continued strong demand for automobiles and solid gains in ships and auto parts.
* Export volumes rose 3.1% on year in December for the first rise in three months after falling 5.6% in November.
* Import values fell 6.8% on year in December for the ninth straight decrease after falling 11.9% in November. It was larger than the median forecast of a 5.2% fall (forecasts ranged from 8.5% to 2.9% drops). The decrease was led by coal and liquefied natural gas as the prices for energy remain below year-earlier levels.
* Import volumes dipped 3.0% on year in December for the 14th straight decrease after falling 3.5% in November.
* Exports to China, one of the top export destinations for Japanese goods, rebounded a solid 9.6% on the year in December for the first rise in 13 months. The pace of decrease had decelerated to 2.2% in November from 4.0% in October and 6.2% in September. December exports of ¥1.77 trillion were the second largest on record, only slightly below the all-time high of ¥1.78 trillion seen in July 2022. The increase was led by shipments of semiconductor-producing equipment and automobiles, which had shown gains in recent months even when overall exports to China were down. Exports of semiconductors among other electronic parts and devices continued to fall.
* Japanese exports to Asia as a whole rose 3.0% in December for the first rise in 12 months, following a 4.1% drop in November. The increase was led by automobiles, chip-making equipment and raw materials.
* Exports to the U.S., which have exceeded those to China since October 2022, recorded their 27th straight year-over-year rise, soaring 20.4% to a record high of ¥2.08 trillion in December, following a 5.3% gain in November and topping the previous record high of ¥1.78 trillion hit in October 2022. The increase was led by automobiles and auto parts, as seen in recent months, as well as a rebound in exports of construction and mining equipment.
* Shipments to the European Union rose 10.3% in December after posting their first year-over-year drop in 33 months in November with a slight 0.03% dip and following an 8.9% rise in October. The increase reflects solid demand for automobiles, auto parts and organic compounds. Declines were seen in mineral fuels, semiconductor-producing equipment and construction and mining equipment.
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