Japan posts biggest export increase in more than four decades
TOKYO, Japan: Japan’s exports registered the fastest growth since May 1980, as vaccinations against Covid infection revived business activities in major markets.
The surge in exports mainly reflects the recovery in shipping, compared to the decline brought about by the 2020 crisis, and is a positive indication as the country’s economy struggles to recover from the first quarter, mid the prolonged decline of COVID-19.
This solid data should bolster the central bank’s outlook, as it seeks not to deviate from its ultra-easy stance, although an extension of crisis mitigation programs to support a fragile economic recovery is expected. likely.
A government extension of emergency COVID-19 restrictions has been enacted in Tokyo and several key regions.
“We cannot count on private consumption, but an upward trend in exports and investment spending will help fill the void in the second quarter,” according to Takeshi Minami of the Norinchukin Research Institute, quoted by Reuters.
“Still, export growth may lack momentum as a global chip shortage will weigh on auto production in the next half-year,” Minami said.
According to data from the Ministry of Finance on June 16, exports registered an annual growth of 49.6% in May, compared to a 51.3% increase projected by economists in a Reuters survey, car shipments to the United States taking the drive.
The peak is close to a 38% increase in April, indicating the largest monthly increase since that month of 1980, when shipments climbed 51.4%.
The increase in May mainly reflects the return effect of a 28.3 percent drop in the corresponding period last year.