The world’s fourth largest economy, Japan, suffered another setback in October. Japan has suffered a trade deficit for the fourth consecutive month. However, the figures have come when exports have improved. According to the latest data, Japan’s Finance Ministry said on Wednesday that the trade deficit amounted to 461 billion yen (3 billion US dollars) last month. Exports in October rose 3.1 percent year-on-year, faster than in recent months. According to PTI News, this has been possible thanks to the increase in the shipment of equipment for the production of semiconductors. But imports, which rose 0.4 percent from last year, are still larger than exports.
Japan fears a sharp increase in tariffs
According to the news, great uncertainty persists regarding trade due to the re-election of Donald Trump as president of the United States. This is because he favors a sharp increase in tariffs. Exports are Japan’s main growth engine. New Prime Minister Shigeru Ishiba has been busy meeting leaders from Asian countries, as well as Europe and South America, to strengthen economic and trade ties, as well as security ties.
Currency weakness is cause for concern
Another cause for concern for Japan is the weakening of its currency. Recently, the US dollar has been trading around 155 yen, up from the 140 yen level a year ago. Inflation and rising energy prices are raising import costs, while lagging global demand is reducing exports. But the recent drop in foreign demand is believed to be partly due to temporary shocks such as typhoons, while the drop in exports is linked to disruptions in car production in Japan.
size of the japanese economy
According to Forbes, the size of the Japanese economy is currently $4.07 trillion. Japan’s GDP growth rate for the year 2024 is estimated at 0.3%. The GDP per capita (in current value in US dollars) is 32.86 thousand dollars. Japan faces stiff competition from India, the world’s fifth-largest economy. According to Forbes, the size of India’s economy is currently $3.89 trillion. But India’s GDP pace is 7 percent. It is believed that India will overtake Japan and become the world’s fourth largest economy by 2025.
Latest business news
