Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Due to plunging exports relative to imports Japan's current account surplus is barely positive.
Exports plunge 25.7% from a year ago
JapanToday reports Japan's Current Account Surplus Shrinks to 5-Year Low.
Japan posted its smallest current account surplus in more than five years in June, Ministry of Finance data showed on Tuesday, mainly due to a slump in exports, highlighting the heavy hit to external demand from the coronavirus pandemic.
Details
- The current account surplus was 167.5 billion yen ($1.58 billion), the smallest monthly surplus since January 2015.
- Exports plunged 25.7% in June from a year ago, hit hard by falling shipments of cars and car parts to the United States.
- Imports shed an annual 14.4%, following a 27.7% annual fall in May.
- Japan's e trade deficit in June widened to 157.7 billion yen.
- A 99.9% drop in foreign tourists due to immigration restrictions imposed over the health crisis sent the travel account to a 157.7 billion yen deficit in June.
Japanese exports
There is little reason to expect a sudden sharp reversal.
US Trade in goods with Japan
The above chart from the Census Department.
As I have commented before, Trump's best chance to reduce trade deficits with the world was not tariffs but rather to have one hell of a recession.
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This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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