Japan trade figures worst for 30 years

Japan has reported the worst trade figures for 30 years. The news highlights the continuing weakness in the world’s third largest economy in the wake of the global downturn and issues with China that has affected exports.

It had been hoped that the nation had secured economic recovery after the 2011 earthquake and tsunami. But as economic data shows, exports to Europe, a key importer of Japanese cars and electronics, has fallen away with only a small upturn in sales to the US.

China-bound car shipments also fell 82 per cent last month. Chinese consumers have boycotted Japanese brands following a row over islands in the East China Sea claimed by both Tokyo and Beijing.

In October, the trade deficit nearly doubled to $6.7bn (£4.2bn) compared to a year ago, which in combination with a lower manufacturing output and shrinking economy, nudges Japan towards recession.

The data puts pressure on the Bank of Japan to increase easing measures designed to spark growth. The BoJ has however kept rates steady. The bank nevertheless warned that it expected Japan’s economy to stay “relatively weak for the time being”.