Japan’s export growth slows due to supply chain crisis

Japan’s exports have snapped seven months of double-digit growth as the supply chain crisis hit the motor industry.

 

Exports expanded by 9.4% in the year to October, the smallest rise in eight months and lower than forecasts.

 

Shipments of cars were hit particularly hard, down by almost 37% from the same time in 2020.

 

The slowdown highlights how vulnerable Japan’s export-reliant economy is to supply chain bottlenecks.

 

Car exports to Japan’s two largest trading partners, China and the United States, dropped by almost half, according to data from the country’s Ministry of Finance.

 

At the same time imports rose by a slower-than-expected 26.7%, meaning that Japan’s imports were 67.4 billion yen ($587m; £437m) higher than its exports.

 

Supply chain problems have impacted economies around world this year as companies struggle to secure the goods they need to operate their businesses.

 

Carmakers have been hit particularly hard by supply issues, especially the shortage of computer chips.

 

In August, the world’s biggest carmaker Toyota slashed its production forecast due to the shortage of semiconductors.

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