Japanese Export Growth Rises
Japanese exports rocketed up from a year previously to 6.38tn yen ($60bn; £38bn) which means there has been a rise of around 6.9%. The weak yen has managed to bring down the price of Japanese goods sold abroad which means foreign consumers have been more inclined to purchase Japanese goods.
Specifically, exports to Asia have risen with sales to China up 15%. China is a major market in Asia and opens up other routes on the continent for Japa n. This is great news for the Japanese economy as it has been struggling recently after trying to recover from several natural disasters which have caused problems to the country’s economy but it is now moving in the right direction.
Recent weak economic data has heightened speculation that the government may announce fresh stimulus measures to get Japan’s economy moving. This may lead to the government considering implementation of policies to further encourage investment into Japan.
Despite this rise in exports, imports have also risen as the country is still heavily reliant on foreign energy after several natural disasters hit nuclear power stations across the country, forcing them to close. Tsunami damage and earthquakes have also wrought havoc on the several areas and their associated industries such as the fishing industry. Imports rose 6.2% to 7.34tn, leaving a deficit of 958.3bn yen, up 1.6% from September 2013.
The weaker yen has also meant that the cost of importing fuel and raw materials has risen as well as components involved in manufacturing which, of course, has hit Japan’s manufacturing sector quite heavily. Takeshi Minami, chief economist at Norinchukin Research Institute, said:
“Exports staged a rebound but they are still lacking momentum as a trend, as Japanese carmakers and other firms are shifting production abroad and global growth remains moderate,”
This recent poor economic data has heightened speculation that the Japanese government may well introduce a stimulus package in order to get the economy going again which could include a low base interest rate and other policies that would encourage foreign invest into the country.
At the start of the month it was found that confidence in the manufacturing sector had risen signalling that many within the industry feel that the industry is likely to pick up in the near future and once this happens it could help power the Japanese economy forward as it is a major sector for the country.
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