Japan’s export growth slowed in March, pressured by diminishing cars and steel shipments to China amid slowing down global demand from higher interest rates, fear of recession and banking crisis in the West.
In March, Japan’s imports rose 7.3%, largely below the estimate of an 11.4% increase and after an 8.3% expansion in the previous month. Meanwhile, exports rose 4.3% in March from a year earlier.
Growth from imports outpaced exports of the world’s third largest economy in March as cost of coal, crude and oil products fueled its annual trade deficit to a record 21.7 trillion yen.
Norinchukin Research Institute stated in a note that Chinese consumption lacks strength even after the termination of zero-Covid policy. Meanwhile, the fully-fledged monetary tightening in the West will take effect on their economy and that will cause Japan’s exports to turn downward going forward.
