– Recent High Pace of Export Growth Also in Reaction to 2020 COVID Slump
– Imports Also Show Sharp Rise As Energy Prices Recover
By Max Sato
(MaceNews) – Japanese exports posted the second straight month of a double-digit percentage increase from a year earlier, when the initial shock of coronavirus infections swept through the world, data released Thursday by the Ministry of Finance showed.
Japanese passenger cars and precision machinery drew recovery demand from China, the U.S. and Europe, but the high pace of the year-on-year rise in April was partly in reaction to double-digit declines in exports seen from March to August last year.
Global demand for chip-making equipment remained solid amid a global semiconductor upward cycle, while automobile shipments picked up from the recent slide, which was caused by lower vehicle production due to semiconductor shortages.
The key points from the MOF’s Trade Statistics:
* Exports surged 38.0% in April from a year earlier, when the first wave of the pandemic hit global growth. It was the second y/y rise in a row after rebounding 16.1% in March and stronger than the median economist forecast of a 30.9% rise. The increase was led by higher shipments of automobiles, semiconductor-producing equipment and auto parts.
* Imports also showed a high pace of increase, up 12.8% y/y, the third straight rise after gaining 5.8% in March. The median economist forecast was for an 8.8% rise. The increase was led by crude oil, refined petroleum products and non-ferrous metals in light of the recent recovery in energy and commodities markets.
* The trade balance came to a surplus of Y255.3 billion in April, marking the third consecutive positive figure, after a surplus of Y662.2 billion the previous month. The gap was wider than the median economist forecast of a Y140.0 billion surplus.
* Exports to China continued to show strong gains, up 33.9% from a year earlier in April for the 10th consecutive y/y rise after +37.2% in March. The increase was led by strong demand for semiconductors, automobiles and raw materials.
* Japanese exports to Asia as whole marked the second straight y/y rise, up 32.7% on year after rising 22.4% in March.
* Exports to the U.S. surged 45.1%, the second rise in a row following +4.9% the previous month. The increase was led by automobiles, auto parts and engines.
* Exports to Europe also jumped 39.6% on year after +12.8% in March, thanks to firm demand for automobiles, auto parts and motorcycles.