TOKYO — Japan’s exports grew at their slowest pace this year in September, hit by cooling foreign demand and a strong yen.
Exports climbed 14.4 percent from a year earlier to $72 billion, the Ministry of Finance said Monday. Imports rose 9.9 percent.
The September figure underlined weakening global demand for Japanese goods. Earlier in the year, Japan’s exports enjoyed stellar 50 percent to 60 percent growth as they bounced back from the previous year’s slump amidrobust growth in Asia.
Waning foreign demand poses a major risk to Japan’s export-led economy. Exports alone account for about 15 percent of Japan’s economic growth.
“The latest data showed falling global demand. Growth in Japanese exports is very likely to slow in the coming months because the global economy has yet to recover,” said Hideki Matsumura, senior economist at Japan Research Institute, a research center.
Apart from weak demand abroad, the government said a rising yen was also hurtingJapanese exports.
A strong yen cuts the value of repatriated profits for Japanese exporters like Toyota Motor Corp. and Sony Corp., and makes their products less competitive abroad. The ministry said the yen in September strengthened about 9 percent against the dollar from the same period last year.
The ministry said the dollar averaged 84.66 yen in September. On Monday the dollar was trading below 81 yen, nearing a post World War II record low of 79.75 yen set in 1995.
“The rising yen will continue to squeeze Japanese exports and pressure earningsof Japanese exporters,” Matsumura said.
Exports to China, Japan’s biggest trading partner, increased 10.3 percent in September from a year earlier, the ministry said. While Japanese exports to China rose for the 11th straight month, the September result marked the lowest growth since November 2009 when exports rose 7.8 percent.
Japan’s exports to Asia increased 14.3 percent - the weakest growth in 2010.
U.S.-bound shipments grew 10.4 percent, while those to the European Union rose 11.2 percent in the month.
Business, Pages 20 on 10/26/2010