The world’s third largest economy, Japan, declines at a slower pace as both exports and imports plunged the nation’s trade balance into deficit for the first time in three months.
Imports declined by 17.3 percent on a yearly basis in August, worse than the 16.6 percent economists forecast but better than 24.7 percent fall recorded in July.
Accordingly, exports fell 9.6 percent year-on-year in August, from a 14 percent decline in July. Bringing the total exports to 5.32 trillion yen ($52.4 billion), while imports stood at 5.34 trillion yen ($52.5 billion).
The deficit of 18.7 billion yen ($184 million) recorded was smaller than the 567.5 billion yen deficit recorded in August 2015.
The Bank of Japan Governor Haruhiko Kuroda is expected to announce its policy rate on Wednesday as investors wait to decipher how the BOJ intends to steam its weak manufacturing sector, while maintaining its competitive edge.
Most economists have predicted further stimulus expansion and an attempt by the apex bank to halt the yen gains in an effort to boost its consumer prices.
Japan’s three years of unconventional quantitative easing has failed to fight off deflation, support job creation and boost exports. Also, the negative rate introduced by Haruhiko Kuroda led team that erased most bank’s profits has failed to rescue the Japanese economy from prolonged weak inflation.