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Japan exports weak

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Japan’s exports are falling short of the central bank’s forecasts, threatening the economic recovery in the country.

Growth has returned to Japan, helped by massive monetary stimulus 13 months ago when Haruhiko Kuroda took control at the bank. Early signs suggest that last month’s increase in the national sales tax will not derail the recovery or drag Japan back into deflation.

But the bank has been wrong about exports. A weak yen was supposed to boost overseas shipments in time to take up the slack when consumption took a hit from the April 1 tax increase to 8 per cent from 5 per cent.

The central bank still forecasts export growth will accelerate.