Saturday, January 29, 2022

Japanese exports rose for the first time in two years

Japanese official data revealed that the country’s exports rose for the first time in two years, last December, providing a glimmer of hope for the government, which is counting on an export-led economic recovery, despite the worsening of the Coron -virus crisis.

A recovery in exports may mitigate the risk of another recession in Japan after a period of recovery. On Thursday, the Japanese Finance Ministry said that exports increased 2% in December year-on-year, which is slightly less than the 2.4% increase expected by economists in a Reuters poll, but it represents an increase compared to a 4.2% decline in the previous month.

This is the first year-on-year increase since November 2018, but on the other hand, and in a worrying sign, auto exports fell 4.2% from the beginning of the year to December, as shipments to the European Union decreased 32.2%.

The decline comes as carmakers such as Toyota Motor and Nissan Motor were due to reduce their production of cars this month due to a shortage of semiconductors after demand recovered from the Corona crisis.

The data showed that Japanese car exports fell in the whole of 2020 by 20%, in the largest decline since shipments halved during the global financial crisis in 2009, which is the main factor contributing to the overall decline in annual exports by 11.1%.

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