Trade gives Japan's economy a boost

25.11.09

Japan's exports strike down at the slowest pace in a year in October as worldwide government spending boosted demand, sustaining the commercial recovery.

Shipments abroad slid 23.2 per cent from a year earlier, compared with a 30.6 per cent sink in September, the Finance Ministry said today in Tokyo. The median estimate of 18 economists surveyed by Bloomberg was for a 26.8 per cent take off.

The figures suggest Japan's rebound from its deepest postwar recession will extend into this quarter as Asian claim spurs sales for manufacturers from Honda Motor to Hitachi Construction Machinery. Exports helped the thriftiness expand at the fastest pace in more than two years in the third quarter, even as prices of goods declined and the yen gained.

``Exports to Asia have been very glaring,'' said Seiji Shiraishi, chief economist at HSBC Securities Japan in Tokyo. ``By January to Strut next year, we should start to see a slowdown'' as the effect of global stimulus fades, he said.

Source: Sydney Morning Herald