Japan Exports Jump 18 Percent, Fastest in Four Years
Japan Exports Jump 18 Percent, Fastest in Four Years

Japan Exports Jump 18 Percent, Fastest in Four Years

Japan Exports Jump 18 Percent, Fastest in Four Years

Booming shipments of cars and electronics in August drove up Japan’s exports at the fastest pace in nearly four years, further evidence that overseas demand is strong enough to support healthy economic growth.
The 18.1% annual increase in exports was the fastest since November 2013 and handily beat the median estimate for a 14.7% annual rise seen in a Reuters poll.
August’s export result was well up on July’s 13.4%, and marked a ninth straight month of expansion.
Export growth is seen likely to continue as the global economy remains on a solid footing, which should underpin policymakers’ confidence in Japan’s economic outlook.
The Bank of Japan is expected to keep monetary policy on hold at a meeting ending on Thursday as inflation remains confusingly low despite data pointing to solid economic growth.
Japan’s exports rose 10.4% by volume in August from a year ago, following a 2.6% annual increase in July.
A pickup in shipments of cars, car parts, and semiconductor manufacturing equipment increased Japan’s year-on-year exports to the United States in August by 21.8% versus an 11.5% annual increase in the previous month.
China-bound exports rose 25.8% year-on-year in August, faster than a 17.6% annual increase in July as Japan shipped more electronic screens panels and plastics.
Imports rose 15.2% in the year to August, versus the median estimate of an 11.8% increase.
The trade balance came to a surplus of 113.6 billion yen ($1.02 billion), versus the median estimate of a 93.9 billion yen surplus. However, the figure was much lower than market expectations of a 356.7-billion-yen surplus.
Japan’s politically sensitive trade surplus with the United States soared 49.6% to 534.7 billion yen ($4.8 billion) on increased exports of cars and microchip-making equipment, the second consecutive monthly rise, AFP reported.
The nation’s trade flows with the US, over which the two countries battled for decades into the 1990s, has become less of a hot-button issue under recent presidential administrations.
Japan logged its first trade deficit in two months with the European Union, while its deficit with China decreased by 30.4%.

 Economist Views
“In a word, the trade data is strong,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. “Imports are strong, but exports were stronger, and this is definitely a positive reading.”
“The actual content of the data is better than the headline balance number,” Shinke said. “Autos and semiconductors are leading the export growth.”
“In the third quarter, we will see a trend reversal in the Japanese economy,” said Hiroaki Muto, chief economist at Tokai Tokyo Research Center. “External demand will be strong and consumption will lack momentum.”

Short URL : https://goo.gl/Z1mM96
  1. https://goo.gl/amhw7K
  • https://goo.gl/iafUw8
  • https://goo.gl/jcU9Js
  • https://goo.gl/Wc5JYT
  • https://goo.gl/Qku2Ft

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...

Add new comment

Read our comment policy before posting your viewpoints