Courtesy of Mish.
Those who thought a declining yen would be a savior to Japan need to reconsider as Japanese February Exports Fall 2.9%.
Japan’s exports fell more than economists forecast and the nation’s trade deficit persisted, underscoring challenges to Prime Minister Shinzo Abe’s campaign to revive the world’s third-biggest economy.
Shipments dropped 2.9 percent in February from a year earlier, the Finance Ministry said in Tokyo today. The median estimate of 22 economists surveyed by Bloomberg News was for a 1.7 percent decrease. Imports rose 11.9 percent, leaving a trade shortfall of 777.5 billion yen ($8 billion).
Extra easing by the Bank of Japan (8301) is “likely to weaken the yen, boosting import costs and expanding the trade deficit,” Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo and a former central bank official, said before the release. “The positive impact of the declining yen has yet to be seen.”
“Yet to be Seen”
I am laughing out loud at that last sentence. I suggest the “positive impact” will not be seen because there isn’t one, at least for the average Japanese citizen.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
