In May 2016, the volume of Japanese exports fell 11.3% compared to May of the last year, to 5.091 trillion yen ($ 49 billion). In April, the exports decline was 10.1%, according to official figures.
The indicator decreased the eighth month in a row on a stronger yen and slowing global economic recovery. Another important reason of export slowing was the disruptions in the supply chain due to the earthquake in Kumamoto Prefecture.
Experts interviewed by The Wall Street Journal, on average, predicted a reduction of Japanese exports by 10.4% in May.
The data show that the economic strategy pursued by the country's authorities, loses ground on weakening global demand and the strengthening of the yen, which reduces profits of Japanese companies from overseas operations and undermines the competitiveness of Japanese exports, experts say.
Exports are likely to increase in the coming months, as foreign demand signals stabilization, but Prime Minister Shinzo Abe remains under pressure due to the need to maintain growth as the further strengthening of the yen threatens exports and corporate profits.
"Exports in April-June, experienced stagnation, reflecting disruptions in the supply chain in Japan and weak demand abroad", - said Hiroaki Muto from Tokai Tokyo Research Center.
"There are good reasons to believe that exports will recover from July to September. We are not in a recession, but further growth of the yen could be a problem" – added he.
Exports fell in May due to the reduction in supply of steel, semiconductors, and electronic equipment.
Exports from Japan in China fell 14.9% in May, and the drop was recorded for the third month in a row.
The volume of exports to the US, the largest importer of Japanese products, fell 10.7%.
Exports to Asia, which accounts for more than half of Japan's shipments, fell 13.0 %, in the EU it fell 4.0%.
Japanese imports fell in May by 13.8% compared to the same month a year earlier - up to 5.132 trillion yen. The fall observed for 17 consecutive months, but the pace has slowed in comparison with April of 23.3%.
Japan's trade deficit in May amounted to 40.7 billion yen. Experts interviewed by the WSJ and Niikei, on average, had forecast a surplus of 26.5 billion yen.