Robust Japanese Exports Allay Fears Of Falling Back Into Recession
February 24, 2010 2:55 PM
According to the data from Japan’s Ministry of Finance, Japanese exports surged 40.9% in January to 4.902 trillion Yen, higher than the average forecast of a surge of 36.4%.
The strong export growth has been driven by brisk orders for electronic parts, and construction materials from Asian firms despite still-weak shipments to Europe, and the U.S. This Asia-led export growth is expected to strengthen the view that Japan will not fall back into recession in 2010.
The country, however, is still plagued by a weak job market and deflation though some firms are compensating their weak domestic sales with exports to fast growing Asian markets.
In addition to a 79.9% increase in shipments to China, and overall 68.1% increase in exports to Asia, Japanese exports to U.S. also grew for the first time in 29 months.
