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Japan’s auto industry had a 10% increase in exports in December

December saw Japan’s exports hit all-time highs, with shipments to China at their highest point in more than a year and to the US hitting their highest level ever. At a time when concerns about China’s economic recovery slowing down and its potential to harm the global economy are at an all-time high, the better-than-expected report is issued. The third-largest economy in the world had a 9.8% growth in exports to 9.65 trillion yen ($65.1 billion) last month compared to the same period the previous year, according to numbers issued by the finance ministry on Wednesday.
This followed a 0.2% decline in November and was higher than the 9.1% consensus estimate given by economists in a Reuters survey.However, experts issued a warning, stating that it was unclear if Japan’s faltering economy—which has seen a drop in industrial output for eight straight months—could depend on a consistent increase in exports.

December Sees All-Time Highs in Japan’s Exports

“Exports were strong, but they might merely be a recovery considering November’s drop. As the rate of economic development in the US, Europe, and China seems to be slowing down, Takeshi Minami, chief economist at Norinchukin Research Institute, said that any recovery in exports is projected to be modest. China, Japan’s main economic partner, witnessed a 9.6% increase in exports in December, amounting to the second-highest amount ever—1.77 trillion yen ($12 billion). Exports of chips and other electronic components dropped 22%, but sales of cars and equipment used in semiconductor manufacturing drove the increase.

Japanese exports reached historic highs in December, despite economic worries.

20.4% growth in exports to the US was part of a 27-month expansionary trend. Cars and car parts, along with exports of mining and construction equipment, were the main drivers of the increase. The drop in imports into Japan in December was 6.8%, more than the median estimate of a 5.3% decline. This exceeded the consensus estimate of a 122.1 billion yen deficit in the trade balance, resulting in a 62.1 billion yen surplus.
Japan’s trade deficit for the full year of 2023 was 9.29 trillion yen, down 54.3% from the year before but still representing deficits from three years prior. Japan’s exports rose by almost 10% in December of last year, mostly because of the strong demand for computers, machinery, and vehicles as well as the revival of trade with China.

In December, Japan’s exports reached record highs in spite of economic worries.

Provisional customs statistics released on Wednesday show that an almost 7% fall in imports left behind trade shocks worth 62 billion yen ($410 million). A declining value of the Japanese yen has helped exporters like Toyota, Honda, and Sony, even while it makes it more expensive to import necessities like gas and oil, which are necessary to run the world’s third-largest economy. A decline in oil prices contributed to an 18% fall in the volume of energy imports in December as compared to the same month the previous year. Due to a recovery in local demand, exports rose by 10% while imports from China stayed the same. An further boost came from increased tourist numbers, which are counted as exports in trade statistics.

December saw record-high export levels from Japan, surpassing predictions.

In a study published at the end of the year, Gabriel Ng of Capital Economics stated that the increase “means that overall net exports should have made a significant contribution to GDP growth in the fourth quarter.” He continued, though, saying that “we anticipate that export growth will be sluggish this year.” According to information from an early poll of plant managers that was also made public on Wednesday, the export manufacturing sector was likewise weak. New export orders decreased from 46.4 to 46.0 on a scale of 50 to 100, where “new export orders” represents the boundary between expansion and contraction. US shipments to Japan, the country’s largest export destination, increased by 20% in December compared to the same month the previous year, while US purchases of goods fell by 7%.

In December, Japan’s exports surpass historical highs despite economic worries.

1.47 million cars were shipped, representing a rise of more than 35% in monetary value and 16% in unit terms. Equipment for power generation, construction machinery, and semiconductors all experienced fast growth. December saw Japan’s exports hit all-time highs, with shipments to China at their highest point in more than a year and to the US hitting their highest level ever. At a time when concerns about China’s economic recovery slowing down and its potential to harm the global economy are at an all-time high, the better-than-expected report is issued. The third-largest economy in the world had a 9.8% growth in exports to 9.65 trillion yen ($65.1 billion) last month compared to the same period the previous year, according to numbers issued by the finance ministry on Wednesday.

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