Japan’s trade gap widened as import costs increased due to supply pressures

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TOKYO – Exports to Japan have increased

Double-digit gains for the third month in a row in April, however

Rising global commodity consumption inflates the country’s imports

A record bill, adding to concerns about rising costs

Alive

To minimize the possibility of recovery led by a personal need,

However, there was a measure of capital expenditure that he posted

First monthly gain in three months.

Mixed data on Thursday followed the fall of the yen

The two-decade low against the dollar earlier this month,

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Which added to the risk of a worsening trade situation

As a financial burden for the resource-poor Japanese economy

Import costs increase.

A weak yen, once considered a boon for export-led

In economics, the impact is less now because shipments are smaller

For the ongoing relocation of Japanese manufacturers offshore

Production

Japan’s exports rose 12.5% ​​in April from a year earlier

The Treasury Department data showed that the US-led shipments led

Cars, slightly missing a 13.8% growth is expected by economists

According to a Reuters poll. It followed a 14.7% increase in March.

At an alarming sign for the outlook, China-bound shipments

April fell 5.9%, the biggest drop since March 2020, as heavy

COVID-19 control has been disrupted in big cities like Shanghai

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Supply-chain and crippled economic activity. Imported from

China – Japan’s largest trading partner – also fell the most

From September 2020, the data shows.

“Imports have gained due to rising crude oil prices and weakness

Yen means transfer of national resources to oil producing countries,

Depriving Japan of purchasing power, “said Takeshi Minami, chief

Narinchukin Research Institute economist.

“For example, Japan’s economic recovery depends on the coronavirus

Development in countries like Shanghai Lockdown and China

Supply-side and consumer activity have been disrupted. ”

Imports have risen 28.2% since April, averaging

A 35.0% growth estimate, since the weak yen has already lifted

Global commodity prices are rising. Import record 8.9 hits

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Trillion yen ($ 69.27 billion), topping exports worth 8 8 trillion

Yen

This has resulted in a trade deficit of 839.2 billion yen.

Narrow than the average estimate of 1.150 trillion yen

Deficit but posted in the ninth month drawn in red.

Analysts have warned of the risk of prolonged cost-cutting

Inflation in a fragile economy with external factors, no

Domestic demand, pushing high import bills.

“If the zero-covid principles are extended, it will remain one

Really tough effect, ”said Taro Saito, executive research fellow

At the NLI Research Institute, China-bound invoices are added

More than one-fifth of Japan’s exports.

Separate data on Thursday showed Japan’s core equipment

Orders in March rose 7.1% from a month earlier, in contrast to a 3.7% increase

Growth expected by economists in a Reuters poll.

Volume data series, regarded as a leading gauge

Over the next six to nine months the capital expenditure, a given

A glimmer of hope for recovery led by internal demand.

Japan’s economy contracted in the first quarter due to Kovid-19

Prohibitions hurt the service sector and rising commodity prices

Has created new pressures.

($ 1 = 128.4800 yen)

(Reporting by Tetsushi Kazimoto and Daniel Lewinsk; Editing by

Sam Holmes)