Japan’s exports rise 13% to $59 billion in July
The Dollar Business Bureau
Japan's exports increased at a fast pace in July, indicating a revival in demand from China, the US and Southeast Asia, though the prices rose faster compared to the volumes for several products.
Exports rose over 13% in July to 6.5 trillion yen ($59 billion) compared to a year earlier, according to a data released on Thursday.
On the other hand, the imports into the country rose 16% to 6.1 trillion yen ($55 billion), supported by an increase in the shipments of oil and coal, the data said.
This resulted in declining of trade surplus by 17% to 419 billion yen ($3.8 billion) compared to a year earlier.
“Trade actually dragged on growth in the world's third-largest economy in the April-June quarter but likely would provide a slight boost for the year,” said Marcel Thieliant of Capital Economic – an independent macroeconomic research firm.
Thieliant forecasts an increase of 6% in export volumes, whereas volumes of import will rise by around 3%.
Earlier this week, Japan reported that its economy has expanded at a rate of 4% annually during April-June. The rate of growth for the year is likely to be lower, at less than 2%.
In the month of July, Japan's shipments to the US rose 11.5% to 1.3 trillion yen ($12 billion), mainly comprising machinery, cars, and car parts. Imports jumped 14% to 671.7 billion yen ($6.1 billion), with increase in the shipments of fish and meat.
Japan’s exports to China surged 18% to 1.2 trillion yen ($11 billion).
The country’s exports to the Association of Southeast Asian Nations (ASEAN), a 10-member bloc, also surged 18%, to 1 trillion yen ($9 billion), on the back strong demand for appliances and other devices.
Japan’s imports of oil jumped 26% year-on-year to 1.2 trillion yen ($11 billion), while the imports of liquefied natural gas (LNG) rose 47% from a year earlier. The country’s coal imports surged 68%.