A laborer works in a container area at a port in Tokyo, Japan July 19, 2017. Picture taken July 19, 2017. REUTERS/Toru Hanai/File photo
TOKYO -Japan’s exports surged to record highs in December, with shipments to the U.S. soaring to their strongest-ever level while those to China were also robust, logging their first rise in more than a year.
The better-than-expected data comes at a time of heightened concern about a faltering economic recovery in China and its potential to drag on the global economy.
Exports from the world’s third-largest economy climbed 9.8 Japan exports soared to record in Dec; China shipments rebound to 9.65 trillion yen ($65.1 billion) last month from the same period a year earlier, finance ministry data showed on Wednesday.
That beat a consensus estimate of 9.1- Japan exports soared to record in Dec; China shipments rebound from economists in a Reuters poll and followed a 0.2Japan exports soared to record in Dec; China shipments rebound contraction in November.
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Economists said, however, that it was unclear whether Japan’s lackluster economy – which has seen factory activity shrink for eight straight months – could bank on a sustainable boost from a recovery in exports.
“Exports were strong but it might only be a bounceback after the fall in November. The pace of economic growth in the U.S. and Europe seems to be slowing a bit and China has only just bottomed out so any recovery in exports is likely to be a weak one,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
Exports to China – Japan’s biggest trading partner – climbed 9.6 percent to 1.77 trillion yen ($12 billion) in December, the second-largest amount on record. Shipments of semiconductor manufacturing equipment and cars led the expansion but exports of chip and other electronic components tumbled 22 percent.
READ: Japan’s Nov exports fall for first time in three months
Exports to the United States surged 20.4 percent, marking 27 consecutive months of growth. Shipments of cars and auto parts as well as construction and mining equipment propelled the increase.
Japan’s imports fell 6.8 percent in December, more than the median estimate for a 5.3-percent decrease. That helped the trade balance come to a surplus of 62.1 billion yen, trumping the median estimate for a 122.1 billion yen deficit.
For the whole of 2023, Japan logged a trade deficit of 9.29 trillion yen, marking three consecutive years of deficit but shrinking by 54.3 percent compared to the previous year.
($1 = 148.12 yen)