Japanese Surplus Up To 25 Year High

The Japanese trade surplus has shown growth to its widest level in almost 25 years in August, as a result of strong continuing trade with neighbouring Asian nations and Europe, according to official figures released today.

The monthly trade surplus reflects the difference between exports and imports within the economy, and is taken as a symbol of economic health and wellbeing. At present, the surplus reflects the positive gap between high exports and low imports into the Japanese economy.

The surplus rose by almost 300% on the year through August up to $6.5 billion largely as a result of an increase in car exports to Europe and other Asian nations.

Exports by region were up 16.4% to Asia and 15.6% to Europe respectively, despite poor strength in trade with the US which was only up by just over 4.5%.

Many analysts have attributed the poorer figure in relation to the US as a result of the ongoing weakness of the dollar, which has made imports to the US more expensive than was previously the case from other, stronger currency regions.

Additionally, it has been taken as yet further signs of the wider slowdown in the US economy, as a direct result of the sub-prime lending crisis and the proceeding credit crunch climate.

Exports for the period were on the whole up by 14.5% against an increase in imports of just 5.7% for the same period. Car exports specifically saw strong growth, up 22% on the year through August, reflecting growing industrial output and international trade.

It is thought that the continuing development of strategic trade partnerships within Asia and Europe will help the Japanese economy offset the slowdown in demand from US buyers as the economy looks set to head further off the rails in the coming months.

Story link: Japanese Surplus Up To 25 Year High