Japan’s exports grew at a slower-than-forecast pace while imports swelled in July, highlighting limits on the economy’s growth that could fuel opposition to a planned sales-tax increase.
Exports rose 12.2 percent from a year earlier, the Ministry of Finance said in Tokyo today, compared with the 12.8 percent median estimate of 23 economists surveyed by Bloomberg News. Imports climbed 19.6 percent, leaving a trade deficit of 1.024 trillion yen ($10.5 billion). The seasonally adjusted deficit expanded from June to 944.0 billion yen.
Prime Minister Shinzo Abe is set to decide in the next month whether to raise the sales tax to 8 percent in April from 5 percent now and will listen to opinions of a panel of experts to consider the impact on the economy. Increasing the tax would risk choking off a recovery helped by stronger exports, just as Japan shows signs of emerging from 15 years of deflation.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.