Japan Exports Slow and Current Account Surplus Drops in May 2008

Japan's current-account surplus narrowed for a third month in May as export growth slowed and record oil prices pushed up the import bill. The surplus shrank 5.9 percent to 2 trillion yen ($18.7 billion) from a year earlier, according to the latest data from the Ministry of Finance. Exports rose 4.2 percent in May from a year earlier, compared with 4.9 percent in April. Imports climbed 4 percent, compared with 13.4 percent in April. Month on month exports - at 6.805 trillion yen - were down on April (6.895 trillion yen).



Exports to the U.S. fell 9.5 percent and shipments to Europe slid 1.1 percent, the first drop since October 2005. Exports to Asia were up 8.1 percent from a year earlier, and those to China gained 12.3 percent, led by shipments of steel, automobiles and oil products. Japan's refiners sent extra fuel to China as part of relief efforts following the May 12 earthquake that killed more than 69,000 people.



Shipments to Russia, the world's biggest exporter of oil and gas, soared 58.8 percent year on year last month, while those to Vietnam were up 40.3%, to India 53.3%, Indonesia 30.4%, and Brazil 24.2%.