Published Date : Aug 20, 2014
Japan’s economy has observed a rise in July with exports rising more than what were forecasted. The rise in exports is a bounce back of country’s economy after two straight declines, one of which was Japan’s most recorded contraction since it was hit by a huge earthquake in 2011.
Finance ministry stated today that exports increased by 3.9% from that of the earlier year. This is higher than the estimate formulated by 28 economists, of nearly 3.8% rise in exports. Country’s imports, which rose by 2.3% from that of the earlier year, left a deficit of US$9.36 billion.
The rise in exports may help country’s Prime Minister Shinzo Abe in increasing the sales tax again, after rising it to 8% in April this year. After experiencing a contraction of nearly 6.8% in April-June this year, Japan’s economy is expected to expand annually by 2.9%, as consumers as well as businesses cut spending as taxes rise.
Economic experts state that exports are rising but they still lack the momentum. Imports in the country are stronger than expected, majorly due to a usual rise in fuel import costs, and not due to domestic demand, which remains dull.
Volume-wise, exports from Japan were 5.6 higher in July than in December 2012, the time when Abe took office.
Exports to Asia were 3.4% higher and those to the US, 2.1% higher in July. Exports to the E.U. reached 10.2% during the same time.
Japan’s exports to China amounted to nearly 1.13 trillion yen in July, an increase by 2.6% than the last year. Exports to Asean nations also increased, by 3.7%.