TOKYO (Reuters) - Japan’s exports rose for the first time in two years in December, driven by shipments to China, government data showed, offering a glimmer of hope for policymakers counting on an export-led recovery amid a resurgence of the coronavirus.
A recovery in exports may ease the risk of a double-dip recession, while the Bank of Japan is seen upgrading its growth forecast for next fiscal year at its rate review ending Thursday. The central bank is expected to stand pat on policy.
Still, the pace of recovery in Japan’s shipments paled in comparison with neighbouring export hubs such as China, Taiwan and South Korea, all of which saw a double-digit growth led by global demand for chip and tech products.
The Ministry of Finance data out on Thursday showed Japan’s exports rose 2.0% in December from a year earlier, slightly below a 2.4% increase expected by economists in a Reuters poll but up from a 4.2% decline in the previous month.
It marked the first annual increase since November 2018.
A recovery in exports may ease the risk of a double-dip recession, while the Bank of Japan is seen upgrading its growth forecast for next fiscal year at its rate review ending Thursday. The central bank is expected to stand pat on policy.
Still, the pace of recovery in Japan’s shipments paled in comparison with neighbouring export hubs such as China, Taiwan and South Korea, all of which saw a double-digit growth led by global demand for chip and tech products.
The Ministry of Finance data out on Thursday showed Japan’s exports rose 2.0% in December from a year earlier, slightly below a 2.4% increase expected by economists in a Reuters poll but up from a 4.2% decline in the previous month.
It marked the first annual increase since November 2018.
Shipments to the United States -- a key market for Japanese goods such as cars and electronics -- dropped 0.7% year-on-year in December, dragged down by airplanes and chip-making equipment.
Exports to Asia, which accounts for more than half of Japanese shipments, advanced 6.1%, while shipments to the European Union decline 1.6%.
Imports fell 11.6% in the year to December, roughly in line with the median estimate, bringing a trade surplus of 751 billion yen ($7.25 billion).
Source Reuters