Japanese exports soar 40% on year
Official figures today from the finance ministry showed Japanese exports surged 40.4% in April to 5.9 trillion yen (£45 billion).
Exports were boosted by global demand for Japanese cars and high tech products and factory parts.
Global demand for Japanese cars, electronics and other goods are recovering after a slump during the global economic downturn.
Japan was one of the first major economies to emerge from recession in the second quarter of last year as a result of a rebound in exports.
Meanwhile, imports in the world’s second largest economy grew 24.2% to 5.15 trillion yen - the fourth consecutive monthly increase.
As a result, Japan’s trade surplus surged more than 14-fold to 742.3 billion yen from 48.99 billion yen a year earlier.
“Exports remain very firm even after very strong growth in January to March,” said Azusa Kato, an economist at BNP Paribas in Tokyo.
“The pace of export growth will slow in April to June, but we expect exports to continue to expand.”
However, deflation remains a problem for the Japanese economy.
Deflation (where prices fall rather than increase) can be a serious threat to an economy because it deters consumers and businesses from spending in expectation of falling prices.
Another risk for the Japanese economy is the country’s debt, which currently stands at nearly 230% of GDP – the highest of any industrialised nation.
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