- Standard & Poor's
Japan's trade deficit narrowed in August from the year before as costs for crude oil imports dropped and exports to the US showed steady growth. The volume of exports declined 4.2% on year in August. However, the value of Japanese exports added 3.1% in August year-on-year, down from July's 7.6% increase and below the forecasted rise of 4.4%. Exports to Asia gained 1.1% on an annual basis to 3.233 trillion yen, whereas exports to Japan's largest trading partner, China, dropped 4.6% year-on-year to 1.064 trillion Yen. On the contrary, exports destined to the US jumped up an annual 11.1% to reach 1.135 trillion yen, whereas exports to the EU slid 0.2% year-on-year to 595.013 billion yen. The highest positive contribution to exports in the last month was made by transport equipment. Meanwhile, imports tumbled by 3.1% against projections for a decrease of 2.5% and remained mainly unchanged from a 3.2% decline in July.
BoJ Governor Haruhiko Kuroda remained optimistic about Japan's economic outlook stating that the world's third biggest economy is on the path of moderate recovery and "the virtuous economic cycle" is in operation. Nevertheless, the global ratings agency Standard & Poor's did not share Kuroda's view and downgraded Japan's credit rating from the previous AA- to A+.
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