Exports jumped 40.9% y/y in January, following a 12% y/y increase in December, as demand elsewhere in Asia rises. Exports had been in decline for the 15 months prior to December.
Asian-bound exports currently make up more than half of Japan’s total, reflecting the importance of Asia to the country’s economic recovery. Japan was severely hit by the global economic downturn and is still struggling, but these strong January figures will bring hope of a turnaround.
Vehicle exports grew 59.2% in January; car parts exports were up 89.6% and exports of semiconductor products increased 83.1%.
Exports to the US reached 710.4 billion yen, up 24.2%. Exports to the EU grew 11.1% to 580 billion yen. Exports to China were up 79.9% y/y to 920 billion yen.
Strengthening demand from China also improved data from Thailand and Taiwan, which both reported strong economic growth this week. Taiwanese exports to China rose 45% y/y in Q4, and Thailand reported an increase of exports to China of 94% y/y, according to the Financial Times.