Japan exports surge 7.3% in March

Japan’s exports rose 7.3 per cent year-on-year in March, marking the fourth consecutive month of growth, offering a positive sign for the country’s economic health, Reuters reported on Wednesday, citing data from the Ministry of Finance.

The figures surpassed Reuters analysts’ expectations of a 7.0 per cent increase and follows a robust 7.8 per cent gain in February.

The positive export trend contrasted with imports, which declined 4.9 per cent compared to the same period last year. This exceeded the projected decrease of 4.7 per cent and the previous month’s slight increase of 0.5 per cent.

The combined effect of these developments resulted in a trade surplus of 366.5 billion yen ($2.37 billion) for March. This figure significantly outperformed the pre-data forecast of 299.9 billion yen.

While the export increase is encouraging, it is important to note that the weak yen has played a role. The depreciation of the Japanese currency makes exports more attractive on the international market but simultaneously inflates the cost of imports.

The overall trade surplus suggests a positive underlying trend for the Japanese economy. However, continued monitoring of currency exchange rates and their impact on import and export activity will be crucial in the coming months.