Japan's trade deficit narrows 92% on jump in exports

According to MarketWatch, while the value of exports jumped 9.5%, export volumes remained flat in June and actually contracted in May. This increase in value of exports is all due to the falling yen. It's artificial and exports haven't even recovered in volume terms. This means that there is less demand for Japanese products, even with a cheaper price tag due to all the money printing.

This means that there is less demand for Japanese products, even with a cheaper price tag due to all the money printing. ah OK then Japan should just stop what its doing and let the yen rise back to 80+ yen/$1 and let all those cheap imports flood back into the country. thatll do just wonders for the J economy, QE is a tool that nearly every country uses, the Feds did it $5trillion +, Uk have done it Japan and now the EU are using it. time get over the cheap yen itll be around for a while yet and with the US rising interest rate this year will most likely become weaker again against the greenback. Also of note its the US$ that has risen against nearly all world currency, since they stopped there money printing.

Agre with WTFJapan, the Yen being even 100 to the dollar, was too high. It did nothing to help the econ, and it punished exporters. Which hurt the economy far more than cheap goods being purchased by consumers, helped the economy. People who came here years ago, when the yen became expensive, are the ones crying about the cheap yen. Sorry that it is harder to pay off student loans with a cheaper yen. But it is a boon to almost everyone else.

Also, look at the yen compared to any currency save for the US dollar, and it isn't that cheap. The smaller trade deficit, coupled with the pretty impressive accounting surplus. makes for a decent recovery. The last road block to Abenomics, is the birthrate. Which is a mountain to overcome. Wages are up, at least bonuses are, they were up 2.6% this year. Also, the consumption tax hangover, seems over. Things look OK, it's the wave of retirees that is hurting Japan. That, and companies not caring about their ROE

Good news reflecting an improvement in the economic health of Japan's client countries.

Keep in mind Japan is a client country as well.

wtfjapan, elkarlo,

Can't agree. The value of the currency is a big input into how the economy goes, but it's not the only one, and IMO, Abe could have done much more pro-growth economic reforms, rather than relying primarily on this beggar-thy-neighbour currency policy.

A strong currency becomes strong for a reason, not by fluke. Japan's problem was its business environment is inflexible, lacking in innovation, and thus failed to change appropriately in response to it's stronger currency.

The old boys of the LDP want Japan to cling to its old model, rejecting the notion of progress. It's like making everyone poorer again like they used to be, so that they can then look forward to again getting richer again in the future.

The problem is the rest of the world keeps getting richer. Japan's nominal GDP has stagnated for years, while elsewhere other nations have seen their GDP double, triple (and even better in emerging markets).

The LDP are out of new ideas.

People who came here years ago, when the yen became expensive, are the ones crying about the cheap yen. Sorry that it is harder to pay off student loans with a cheaper yen. But it is a boon to almost everyone else.

Not really. People with overseas debts are not the only losers. A weak currency is bad for everyone who wants to buy something that comes from overseas. Which, considering Japan imports so much of it's raw materials, means virtually everyone.

Printing more money has only eroded the purchasing power of Japanese workers. This is to such an extent that South Korea will overtake Japan in GDP per capita by 2017. Japan's nominal GDP is smaller than it was in the late 1980s.

Japanese GDP in USD($) Billions (23% less than before)

YR 2012-13: $5954.48; YR 2013-14: $4915.56; YR 2014-15: $4601.46

Keep on printing money. It's easy to increase GDP and Export in Yen. Just DON'T convert them into the US or Chinese money. Then they can be delusional and be happy.

As to imports, they can continue to decrease in volume. It's going to lower standards of living for Japanese because they can afford less of goods. But, at least, it's going to do good for big corporations into exports (cheap labor). I don't think Japanese people are stupid; they are just very patriotic, sacrificing themselves.