Japan’s export slump accelerated in May, casting doubt on the economy’s growth prospects as it struggles to emerge from the worst postwar recession.China isn't offsetting anything. Yes, trade with China has dropped less than with most other trade partners, but it is still off a whopping 30% year over year.
Shipments abroad dropped 40.9 percent from a year earlier, more than April’s 39.1 percent decline, the Finance Ministry said today in Tokyo. The median estimate of economists surveyed was for a 39.3 percent decrease. From a month earlier, exports fell 0.3 percent, the first deterioration since February.
Declines in shipments to Asia deepened for the first time since January, damping hopes that demand from the region will spur a recovery in the world’s second-largest economy. China’s 4 trillion yuan ($585 billion) in stimulus measures haven’t been enough to offset sales declines in the U.S. and Europe.