TOKYO (Reuters) – Japan’s exports likely fell for an eighth straight month in July, a Reuters poll showed Friday, as a protracted U.S.-China trade war and weak global demand hurt shipments from the world’s third-largest economy.
Adding to the growing challenge for policymakers, the nation’s core consumer inflation is also expected to stay at 2-year lows for the month, weighed down by softer prices of energy-related items, the poll showed.
Exports - July - % - Year - Slump
Exports in July were forecast to have shrunk 2.2% from a year earlier, which would extend a slump that began in December last year, but not as bad as a revised 6.6% decline in June.
Many export-reliant economies such as Japan have been hit hard by the Sino-U.S. tariff row, which has already upended supply chains and undermined global trade, investment and corporate earnings.
Weak - Demand - Slowdown - China - US-China
“Weak external demand due to the global economic slowdown, notably China, and heating up of the U.S.-China trade friction, pushed down exports,” said Kenta Maruyama, economist at Mitsubishi UFJ Research and Consulting.
“International commodity markets such as oil prices have weakened, which also weighed on imports…but we expect a demand rush ahead of a planned sales tax hike in October will help boost imports.”
Poll - Forecast - Imports - % - Year
The poll forecast that imports would slip 2.7% from a year earlier, meaning the trade balance will turn...
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