By Satoshi Sugiyama and Maki Shiraki
TOKYO, April 12 (Reuters) – The weak yen was once a cause for celebration for Japanese companies, as they could sell cars and cameras cheaper abroad and enjoyed fatter profits when earnings were brought home.
These days, it’s not so straightforward.
After years of bolstering overseas production and supply chains, Japan’s manufacturers now see less benefit from a softer currency, company officials and economists say.
In fact, the economic pain from a weaker yen has become stark now, as the recent yen sell-off has sharply lifted commodities costs in a blow to household spending. It also shows how the steady move to overseas production is slowly changing the dynamics of the world’s no.3 economy.
WHAT’S CHANGED FOR JAPANESE COMPANIES?
Almost a quarter of Japanese manufacturers’ production is carried out overseas, according to the latest trade ministry data. That compares to around 17% a decade ago and less than 15% two decades ago.
Around two-thirds of the…
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2022-04-12 07:43:19
