Identifier
Created
Classification
Origin
09TOKYO156
2009-01-23 09:29:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tokyo
Cable title:
JAPAN RELEASES GLOOMY DECEMBER TRADE DATA
how-toVZCZCXRO3377 OO RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHNAG RUEHPB DE RUEHKO #0156 0230929 ZNR UUUUU ZZH O 230929Z JAN 09 FM AMEMBASSY TOKYO TO RUCPDOC/USDOC WASHDC IMMEDIATE RUEHC/SECSTATE WASHDC IMMEDIATE 0222 INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION PRIORITY RUEHRL/AMEMBASSY BERLIN PRIORITY 1572 RUEHLO/AMEMBASSY LONDON PRIORITY 2324 RUEHFR/AMEMBASSY PARIS PRIORITY 6392 RUEHRO/AMEMBASSY ROME PRIORITY 2230 RUEHGV/USMISSION GENEVA PRIORITY 3469 RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS TOKYO 000156
SENSITIVE
SIPDIS
STATE FOR EAP/J VMURRAY, EEB/BTA EMAGDANZ
PASS USTR FOR WCUTLER, MBEEMAN
E.O. 12958: N/A
TAGS: ETRD ECON JA
SUBJECT: JAPAN RELEASES GLOOMY DECEMBER TRADE DATA
REF: 08 TOKYO 3302
UNCLAS TOKYO 000156
SENSITIVE
SIPDIS
STATE FOR EAP/J VMURRAY, EEB/BTA EMAGDANZ
PASS USTR FOR WCUTLER, MBEEMAN
E.O. 12958: N/A
TAGS: ETRD ECON JA
SUBJECT: JAPAN RELEASES GLOOMY DECEMBER TRADE DATA
REF: 08 TOKYO 3302
1. (U) Summary: Japan's trade surplus dropped 80 percent in
2008, according to trade data released January 22 by the
Ministry of Finance. Both exports and imports fell sharply
late in the year, with December exports down by 35 percent,
year-on-year, and imports down by 21.5 percent. Japan ran a
trade deficit for four of the last five months, with
substantial declines across all major sectors. For 2008 as a
whole, Japan's exports were down 3.4 percent while imports
were up 7.9 percent. End summary.
2. (U) Japan's trade surplus fell to 2,157 billion yen in
2008 (USD 20.9 billion at 2008 average rate USD 1 = JPY
103.37) from 10,795 billion yen (USD 104 billion) in 2007.
The trend is more striking, though, in quarterly data. In
the first quarter 2008, Japan enjoyed a surplus of 1,982
billion yen, albeit still down 22 percent from the previous
year. By the fourth quarter, however, Japan's trade account
had slipped 612 billion yen into deficit.
3. (U) Japan's exports for the year fell 3.4 percent, to
81,049 billion yen (USD 784 billion). The year-on-year
decline for December, however, was 35 percent and followed a
26.7 percent drop in November. Exports to the U.S. fell 15.8
percent and to the EU were down 7.8 percent in 2008. Exports
to the Middle East were up modestly but from a smaller base
and even these tapered off in the second half of the year.
For December, Japan's exports were down 36.9 percent to the
U.S., 41.8 percent to the EU, 36.4 percent to Asia, and 10.7
percent to the Middle East. Declines in imports were smaller
but still across the board and in double digits.
4. (U) All of Japan's major manufacturing sectors were
affected. Exports of transportation equipment fell 37
percent with the largest component, motor vehicles, dropping
45.4 percent. Other major categories also declined:
electrical equipment by 39.4 percent, machinery by 29.4
percent, manufactured goods by 22.4 percent, and chemicals by
46 percent.
5. (SBU) Japanese media cite the sharp decline in foreign
demand for Japanese exports and the recent strengthening of
the yen as the primary factors behind the trade figures.
Local economists told Emboff that while the government
considers long-term policies to promote competitiveness and
innovation in Japan, industry is adopting urgently short-term
measures to reduce costs and cut production. Should the
situation continue, some have suggested Japan may see further
efforts to move production to cheaper platforms abroad.
6. (U) The Ministry of Finance trade data can be found at:
http://www.customs.go.jp/toukei/latest/index e.htm.
ZUMWALT
SENSITIVE
SIPDIS
STATE FOR EAP/J VMURRAY, EEB/BTA EMAGDANZ
PASS USTR FOR WCUTLER, MBEEMAN
E.O. 12958: N/A
TAGS: ETRD ECON JA
SUBJECT: JAPAN RELEASES GLOOMY DECEMBER TRADE DATA
REF: 08 TOKYO 3302
1. (U) Summary: Japan's trade surplus dropped 80 percent in
2008, according to trade data released January 22 by the
Ministry of Finance. Both exports and imports fell sharply
late in the year, with December exports down by 35 percent,
year-on-year, and imports down by 21.5 percent. Japan ran a
trade deficit for four of the last five months, with
substantial declines across all major sectors. For 2008 as a
whole, Japan's exports were down 3.4 percent while imports
were up 7.9 percent. End summary.
2. (U) Japan's trade surplus fell to 2,157 billion yen in
2008 (USD 20.9 billion at 2008 average rate USD 1 = JPY
103.37) from 10,795 billion yen (USD 104 billion) in 2007.
The trend is more striking, though, in quarterly data. In
the first quarter 2008, Japan enjoyed a surplus of 1,982
billion yen, albeit still down 22 percent from the previous
year. By the fourth quarter, however, Japan's trade account
had slipped 612 billion yen into deficit.
3. (U) Japan's exports for the year fell 3.4 percent, to
81,049 billion yen (USD 784 billion). The year-on-year
decline for December, however, was 35 percent and followed a
26.7 percent drop in November. Exports to the U.S. fell 15.8
percent and to the EU were down 7.8 percent in 2008. Exports
to the Middle East were up modestly but from a smaller base
and even these tapered off in the second half of the year.
For December, Japan's exports were down 36.9 percent to the
U.S., 41.8 percent to the EU, 36.4 percent to Asia, and 10.7
percent to the Middle East. Declines in imports were smaller
but still across the board and in double digits.
4. (U) All of Japan's major manufacturing sectors were
affected. Exports of transportation equipment fell 37
percent with the largest component, motor vehicles, dropping
45.4 percent. Other major categories also declined:
electrical equipment by 39.4 percent, machinery by 29.4
percent, manufactured goods by 22.4 percent, and chemicals by
46 percent.
5. (SBU) Japanese media cite the sharp decline in foreign
demand for Japanese exports and the recent strengthening of
the yen as the primary factors behind the trade figures.
Local economists told Emboff that while the government
considers long-term policies to promote competitiveness and
innovation in Japan, industry is adopting urgently short-term
measures to reduce costs and cut production. Should the
situation continue, some have suggested Japan may see further
efforts to move production to cheaper platforms abroad.
6. (U) The Ministry of Finance trade data can be found at:
http://www.customs.go.jp/toukei/latest/index e.htm.
ZUMWALT