Japan exports continue to support fragile economic rebound
Japan’s exports recorded a double-digit expansion in five straight months mainly attributed to the shipments of automobiles to the United States.
The country’s economy grew 1.3% in the second quarter due to strong exports and a surprising increase in private spending.
Based on the data from the Ministry of Finance on Wednesday, exports climbed 37.0% year-on-year in July after a 48.6% increase in June. However, it fell short of a 39.0% growth economists initially projected.
Exports to Japan’s biggest trading partner, China, was up 18.9% in the year to July. It was driven by chip-making equipment and plastic. Meanwhile, shipments to the U.S. gained 26.8% in the same month lifted by exports of cars, car parts, and motors.
Despite the latest signs of progress, Japan’s economic growth is still considered weak. In addition, the extension of the COVID-19 restrictions puts pressure on Prime Minister Yoshihide Suga into adopting another hefty stimulus plan.