Japan’s exports increased in over 2 years with higher shipments of cars and steel

The Dollar Business Bureau 

Japan's exports grew by the fastest in the past two years in May on account of larger shipments of steel and cars - an encouraging signal that strong international demand will help in the country’s economic growth.

The 14.9% growth in shipments from Japan in May was lower the average estimates of a 16.1% annual rise, however, it was the biggest increase since January 2015.

Exports are expected to continue to increase at a stable pace as the economies, globally, indicate increasing signs of growthwhich should support Japanese economy extend its latest show of a solid expansion.

Japanese exports to the US increased by 11.6% in May compared to the same month a year ago, the fastest rise since July 2015, on account of an increase in exports of cars and auto parts.

In May, Japan’s trade surplus with the US was 411.1 billion yen (around $3.71 billion), rise of 19% compared to the same period in the previous year. In April, the trade surplus with the US dropped 4.2% on annual basis.

Last month, Japan’s exports to China rose by 23.9% year-on-year, following a 14.8% annual rise in April.

Bigger shipments of flat panels and semiconductor manufacturing equipment from Japan led to the increase in China-bound shipments.

Japanese exports to Asian region, including China, grew 16.8% in the given month from a year ago, the fastest growth in the last three months, on account of rise in steel shipments to Indonesia and electronics to Hong Kong.

In volume terms, Japan's exports increased 7.5% in May, the fastest rise in three months, which indicates firm global demand.

Japan's imports increased by 17.8% in the year to May, surpassing the average estimate for 14.8% annual rise, due to an increase in the oil prices from a year ago that stepped up the value of imports.

The trade deficit came to 203.4 billion yen, against the median estimates for a deficit of 76 billion yen.