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Tuesday, 28th September 2010
In Business In Japan,

Japan's export growth continues slowdown

New figures show that Japan's export growth slowed down for the sixth month running amid concerns about the country's economic recovery.

Data showed a 15.8 per cent increase in export levels in August – significantly lower than the 45.3 per cent rise reported in February.

Recent events have also helped to undermine Japan's international economic stability. The yen hit a 15-year high against the dollar and the country's monetary authorities stepped in to weaken the currency in order to prevent export levels falling.

The ongoing diplomatic disputes with China, Japan's biggest export partner, are also likely to further hit growth levels. In addition, Chinese customs authorities have introduced tougher checks on Japanese goods which have resulted in delivery delays.

"We still face the risk of a double-dip recession," said Takahide Kiuchi, chief economist at Nomura Securities in Tokyo.

Meanwhile, Takefuji, a key Japanese consumer finance company, has filed for court protection from its creditors - it is Japan’s third-largest bankruptcy this year.

Written by Mark Smith