Japan’s exports expanded at the weakest pace in over two years amid a global economic slowdown, adding to uncertainty over the country’s growth outlook amid speculation Prime Minister Fumio Kishida may be considering an early election.
The value of exports rose 0.6% from a year earlier in May, the slowest pace since February 2021, the Finance Ministry reported Thursday. That compared with analysts’ expectation of a 1.2% decline, and though better than forecast still reflected the trend of weakening global trade. Declines in exports of mineral fuel, chip making machinery and semiconductor parts dragged on Japan’s shipments abroad.
Imports were also down 9.9%, with falls in fuel prices contributing to the drop from a year ago. The decline was the biggest in over two years and came largely in line with economist expectations.