A Jump in Japan’s Exports Thanks to Strong Demand From The United States and China

Japan’s exports jumped in June, led by US demand for cars and shipments to China of chip-making equipment, raising hopes of an export-fueled recovery in the world’s third-largest economy.

Exports increased 48.6% year on year in June, posting double-digit gains for the fourth consecutive month, but the rate was greatly inflated by the sharp decline caused by the Covid pandemic last year. Export growth remained strong even as Japan’s auto production and shipments were hit by the global chip shortage.

With consumer spending slashing due to renewed anti-coronavirus restrictions in Tokyo, policymakers are counting on external demand to compensate.