Exports shrink first time in over two years


Slowing trade: Cars for export parked at a port in Yokohama. Japan sank into a trade deficit last month as commodities prices have declined. — AP

TOKYO: Japan’s exports dropped for the first time in more than two years as patchy overseas demand weakened, signalling headwinds for an economic recovery that has relied increasingly on external markets as domestic spending sputters.

The value of exports fell 0.3% in July from a year earlier, retreating for the first time since February 2021 as sharp falls in shipments of chip-making gear and parts outweighed a jump in demand for cars, the finance ministry reported yesterday. Economists had forecast a 0.2% decline.

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