Japan's exports rise more than expected in November amid strong global demand
Date
12/18/2024 1:48:07 AM
(MENAFN) Japan's exports increased more than expected in November, driven by a weaker yen and strong global demand, according to data released on Wednesday. Exports rose 3.8 percent compared to the same month last year, exceeding the market's forecast of a 2.8 percent gain and building on a 3.1 percent increase recorded in October.
The rise in export value was largely supported by strong shipments of chipmaking equipment to Taiwan and China, along with the depreciation of the yen, which boosted competitiveness. However, export volumes declined by 0.1 percent, indicating that the growth in value was primarily a result of the weaker yen rather than an increase in the quantity of goods shipped.
Despite the positive headline figures, the results were met with caution. Koki Akimoto, an economist at Daiwa Research Institute, noted that the numbers were not as strong as they appeared at first glance. He suggested that while demand for chipmaking equipment is likely to sustain export levels, challenges such as a moderate slowdown in the United States and potential protectionist trade policies under President-elect Donald Trump could pose risks in the near future.
Breaking down the figures, exports to China, Japan's largest trading partner, rose by 4.1 percent year-on-year in November. In contrast, exports to the United States dropped by 8 percent, largely due to weaker demand for Japanese automobiles. On the import side, Japan saw a 3.8 percent year-on-year decline in November, significantly missing market expectations of a 1 percent increase, highlighting uneven trade dynamics.
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