U.S., China’s demand fuels Japan’s exports
Hopes were up for an economic recovery in Japan following a surge in exports in June fuelled by the United States’ demand for cars and China’s chip-making equipment needs.
Japan saw a 48.6% export growth in June from a year earlier, the country’s double-digit gain for four straight months despite its problems with global chip shortage in car output and shipments.
Japan’s export to China rose 27.7% in the year to June due to the latter’s demand for chip-making equipment, raw materials and plastic.
Meanwhile, export to the U.S. jumped 85.5% driven by shipments of cars, auto parts, and motors. The country’s 48.6% year-on-year export growth surpassed economists’ expectations of a 46.2% increase.
Japan’s economy improved for the first time in five periods, with a 23.2% growth in the first half of this year. This growth exceeded pre-pandemic levels in the first half of 2019 and the fastest growth since the first half of 2010.