The government announced on Thursday that exports for the month totalled 8.2 trillion yen ($55 billion), marking the third consecutive month of growth
Japan’s exports have risen by nearly 8% in February driven up by strong demand for cars and machinery.
The government announced on Thursday that exports for the month totalled 8.2 trillion yen ($55 billion), marking the third consecutive month of growth. The trade deficit has also reduced by more than half to 379 billion yen ($2.5 billion), making it the second month in a row with a deficit.
However, exports to China only increased by 2.5%, and those to all of Asia went up by just 2.3%, suggesting demand has slowed down. Exports to the United States rose by 18% and those to the EU increased by almost 16%.
As for imports, China supplied 1.7 trillion yen ($236 billion), a nearly 17% annual increase that more than doubled Japan’s deficit with its giant neighbour. Overall, imports edged up 0.5%, totalling nearly 9 trillion yen ($60 billion), as prices for key commodities such as coal and liquefied natural gas fell.
This boost in exports is a stimulus for the economy, especially after the Bank of Japan raised its key interest rate for the first time in 17 years, no longer setting it at below zero. The central bank has promised to still keep lending as it gauges various signs for how growth holds up. There has also been a strong bounce-back in tourism, which is counted as exports. The latest data shows that visitor numbers have now surpassed those before the COVID-19 pandemic. Japan had put restrictions on entry during the pandemic.
Even though Japan’s economy has slowed down, exports have stayed pretty strong, reaching a record-breaking high of just over 100 trillion yen ($670 billion) in 2023. Japan is the world’s fourth largest economy.
