tokyo (reuters) – a japanese exports have increased in may at their most rapid pace for more than two years, as the automotive and steel industries, suggesting that external demand will be a valuable support for domestic economic recovery remains moderate.
these exports increased by 14.9% last month, the lowest level since january 2009, after an increase of 7.5% in april. economists surveyed by reuters had not, however, an increase of 16.1%.
imports increased by more than expected in may, an increase of 17.8 percent, the most since the beginning in 2014, compared with + 15.1% in april and reached + 14.8%. this increase is due to the increased demand for intermediate goods, necessary for the manufacture of the final products, and the price of oil.
the month of may, has resulted in a trade deficit of $203.4 billion yen (1.64 billion) compared with a surplus of 481.7 billion in april and a consensus with a positive balance of 6.0 billion.
exports are expected to continue to increase at a steady pace in the future for the well-being of many of japan’s trading partners.
the main scenario is that japanese exports will continue to grow, “said hiroshi tonouchi, mitsubishi ufj morgan stanley securities economist at.
however, the growth rate somewhat slow because the stocks of goods, such as electronics, begin to grow abroad.
tonouchi also notes that exports of automotive sector can also be explained by the fact that an earthquake in may 2016 to kumamoto caused a momentary interruption of the output of goods.
in volume terms, japan’s exports increased by 7.5% in may, compared with may 2016, which is again a stronger external demand.
in volume terms, the imports have increased by 5.4% in may, the third consecutive month of rising of a strengthening of domestic demand.
it can be said that domestic demand is good, but it is especially in the manufacturing sector, “says hidenobu tokuda, an economist with mizuho research institute.
“there are more durable goods, which are related to the expenditure of households, but the increase in industrial production is the main explanation for the growth in imports.
the government and economists have become more optimistic about the japanese economy and its growth this year, thanks to the performance of industry and the labour market is tight.
the bank of japan (boj) has been the status quo, and increased its assessment of private consumption, and for the first time in six months.
household consumption detonates within an economy, which is also made in japan, his weakness is considered to be the cause of inflation, which prevents the amorphous undertakings to increase their prices, and the growth is at the discretion of the single foreign trade.
(mr. van overstraeten and wilfrid exbrayat for service in french).
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Translated by forexguides.info Team