2007 real global trade growth halved from 2006: JETRO.

TOKYO, Aug. 7 Kyodo

The real growth rate of global trade adjusted for fluctuations in prices and currency exchange rates slowed to 5.6 percent in 2007 from 10.5 percent in 2006 as downside risks to the world economy loomed, the Japan External Trade Organization  said Thursday.

Nominal global exports jumped 15.0 percent from the previous year to $13.76 trillion yen, breaking the record for the sixth consecutive year. But the increase stemmed largely from the dollar's depreciation caused by the U.S. economic slowdown, said the government-affiliated trade promotion body known as JETRO.

A weaker dollar inflated the dollar-denominated export value, while soaring oil and other resources prices did much to boost the value, JETRO said.

Japan's exports and imports both reached all-time highs. Exports leapt 10.1 percent to $712.7 billion, rising for the sixth straight year. Its imports climbed 7.2 percent to $621.1 billion, increasing for the fifth year in a row.

Exports to the United States declined for the first time in four years, totaling $143.4 billion, down 1.6 percent from the previous year. The fall was more than offset by growth in exports to the rest of the world including emerging economies like China and Russia.

Japan's direct investments abroad in 2007 surged 46.5 percent to an all-time high of $73.5 billion.

Overseas sales of exchange-listed Japanese companies accounted for 36.9 percent of their total sales.

''Japanese companies were less hit by the U.S. subprime mortgage mess than their Western counterparts and their financial profiles are in good shape,'' said JETRO researcher Toshiki Takahashi. ''It is important that they should not miss good opportunities to aggressively strike overseas corporate merger and acquisition deals.''