Japan Exports Rise Most Since Late 2022

(RTTNews) - Underpinned by weaker yen, Japan's exports grew at the fastest pace since 2022 in May despite the fall in sales volume, official data revealed on Wednesday.

Exports advanced 13.5 percent on a yearly basis after rising 8.3 percent in April, the Ministry of Finance said.

This was the fastest expansion since late 2022 and marked the sixth consecutive rise. Also, the rate surpassed economists' forecast of 13.0 percent.

The increase reflects higher shipment of cars and chip-making machinery.

At the same time, growth in imports rose to 9.5 percent from 8.3 percent in April. Imports were forecast to climb at a faster pace of 10.4 percent.

As a result, the trade balance showed a shortfall of JPY 1.22 trillion compared to the expected level of JPY 1.3 trillion.

Capital Economics' economist Marcel Thieliant said most of the increase in trade values over the past year reflects rising prices due to the sharp weakening of the yen rather than any marked improvement in volumes.

The economist said the net trade is likely to provide a small drag on GDP growth this quarter.