Updated March 21st, 2024 at 08:49 IST

Japan exports surge as demand strengthens in key markets

Despite this shift, the Bank of Japan is anticipated to maintain near-zero interest rates for the foreseeable future to bolster the fragile economic recovery.

Reported by: Business Desk
Japan exports surge | Image:Unsplash
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Japan’s export: Japan's exports extended their growth streak for the third consecutive month in February, buoyed by improved demand from major markets including the US, China, and the European Union (EU). 

The development provides a glimmer of hope for policymakers aiming to revitalise economic growth following last year's sluggish performance.

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According to data from the Ministry of Finance released on Thursday, exports in February increased by 7.8 per cent compared to the same period last year, surpassing economists' expectations of a 5.3 per cent gain in a Reuters poll.

The release of trade data comes shortly after the central bank's decision to shift towards normalising policy, marking a notable departure from years of unconventional easing measures. 

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Despite this shift, the Bank of Japan is anticipated to maintain near-zero interest rates for the foreseeable future to bolster the fragile economic recovery.

Exports have been a focal point for policymakers concerned about Japan's economic resilience, particularly as the country narrowly avoided recession toward the end of last year.

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In contrast, imports saw a modest year-on-year increase of 0.5 per cent in February, falling short of the median estimate of a 2.2 per cent rise.

The trade balance recorded a deficit of 379.4 billion yen ($2.52 billion), considerably less than the median estimate of 810.2 billion yen for a deficit.

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A Reuters survey conducted earlier on Thursday revealed that confidence among large Japanese firms rebounded to a three-month high in March, while sentiment in the service sector reached a seven-month peak.

(With Reuters Inputs)

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Published March 21st, 2024 at 08:49 IST