SHIZUOKA, Japan--Bank of Japan Deputy Gov. Hiroshi Nakaso said
Wednesday that the recovery in the country's exports has been
"sluggish" and slow by historical standards, highlighting how
lackluster shipments abroad have become a major debate topic among
central bankers.
"While domestic demand remains firm, exports have recently been
sluggish," Mr. Nakaso said in a speech to business leaders in the
city of Shizuoka, central Japan.
Slow growth in emerging economies, a dip in U.S. demand due to
unusually cold winter weather, and strong demand for goods at home
before a sales tax increase in early April are among the reasons
for Japan's poor export performance, Mr. Nakaso said. "However,
even taking these factors into account, the pace of recovery in
Japan's exports has been slower than in the past," given the
support they are getting from the yen's weakness and an overall
global economic recovery, he said.
The remarks by the career BOJ official seen as Gov Haruhiko
Kuroda's right-hand man likely represent the mainstream view of the
central bank's nine policy board members.
While the factors weighing down exports are expected to
disappear gradually, "since exports as a whole have yet to pick up,
continued attention without undue optimism is warranted," Mr.
Nakaso also said.
But in a sign that a lack of vigor in exports is unlikely to
spur the BOJ to act soon, Mr. Nakaso said that Japan is steadily
pulling out of over a decade of deflation and is on track to see 2%
inflation in next year or so. The economic impact of the increase
in the sales tax rate to 8% from 5% on April 1 has been within the
BOJ's expectations, he added.
Write to Takashi Nakamichi at takashi.nakamichi@wsj.com
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