Japanese exports drop 41 per cent, trade surplus down in May

Tokyo - Japan exported 40.9 per cent less in May 2009 than it did in the same month last year, the Finance Ministry said Wednesday, as the country's economy was slow to emerge from its worst recession since the end of World War II. Exports dropped to 4 trillion yen, with exports to the United States and China marking the biggest drops. Exports declined year-on-year for the eight consecutive month. The decrease was higher than anticipated, and higher than April's 39.1-per-cent drop, indicating that economic recovery was struggling to pick up speed. Imports plunged 42.9 per cent to 3.72 trillion yen, dragged down in part by falling oil prices. The trade surplus narrowed by 12.1 per cent year-on-year in May to 299.84 billion yen (3.14 billion dollars). The custom-cleared trade surplus was the largest in a year as exports were recovering slowly while imports fell, the ministry's preliminary report said. Exports to China, Japan's biggest trading partner, tumbled 29.7 per cent to 815.28 billion yen from the same month last year, and imports dropped 32 per cent to 816.14 billion yen. Japan's trade deficit with China shrank, to 860 million yen from April with a deficit of 178.61 billion yen. Shipments to the United States fell 45.4 per cent to 644.52 billion yen, and imports declined a record 40.3 per cent to 418.59 billion yen. The trade surplus narrowed 52.9 per cent to 225.93 billion yen. Exports to the rest of Asia fell 35.5 per cent to 2.25 trillion yen, and imports declined 36.3 per cent to 1.65 trillion yen. Trade surplus was down 33.2 per cent to 596.56 billion yen. The trade surplus with the European Union contracted 75.4 per cent to 84.34 billion yen. Exports were down 45.4 per cent to 524.35 billion yen, and imports dipped 28.8 per cent to 440.01 billion yen.