Japan’s current account surplus narrowed from Â¥625.4 billion ($7.99 billion) in July. This was lower by almost 41% compared to a year ago. Revised data also lowered the GDP growth from 1.4% down to 0.7% in the April-June quarter.
“The data indicate how the economy has been slowing since the beginning of the year and increases concern over the economic outlook,” said Hideki Matsumura, chief economist at Japan Research Institute.
The figures add to other recent weak data, including industrial production, showing Japan’s export-led recovery wavering amid the global slowdown, and also cast doubt on the ability of domestic demand to support growth going forward.
The current-account figures showed a 7.4% decline in exports on year that a Ministry of Finance official briefing reporters attributed to weak exports to Europe and China.
The slump in exports contributed to an overall trade deficit of Â¥373.6 billion, a figure that shows “the recovery in the overseas economies, which was expected in the latter half of this year, is being delayed,” said RBS Securities chief Japan economist Junko Nishioka.
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