Japan's export growth slows

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Friday, 26th November 2010
In General Japan News,

New data shows that Japan's export growth has slowed for the eighth consecutive month.

According to the finance minister, exports rose by 7.8 per cent last month - less than the 14.3 per cent reported in September and below market forecasts.

There are concerns that the new figures reflect the ongoing uncertainty about the country's economy, especially as the yen remains strong on international markets and therefore makes Japanese goods more expensive overseas.

However, experts believe any economic recovery in the US or Europe could help to strengthen the Japanese export levels.

"Japan's exports could recover in the first or second quarter of next year in line with the inventory cycle," Kiichi Murashima at Citigroup Global Markets, told BBC News.

He added: "If sovereign debt problems spread in Europe it could be a risk. However, currency markets are stable so there is less pressure."

Japanese firms have recently been advised by the government to consider taking advantage of the strong yen and invest in opportunities overseas.

Written by Mark Smith.