Japan's Exports Grow at Fastest Rate Since October 2022 Amid Strong Semiconductor Shipments
Japan’s exports grew by 23.2% year-on-year in July, the fastest pace since October 2022 and above economists’ expectations of 19.9%. The surge was driven largely by a significant increase in semiconductor equipment shipments, which rose 49.1%, fueled partly by global demand linked to artificial intelligence development. Exports to key markets like China increased by 25.8% while those to the U.S. climbed 22%. Strong export performance has supported Japan’s GDP growth for two consecutive quarters, with year-on-year expansion at 0.7% in Q2 compared to 0.5% in Q1. Despite missing expectations on a quarter-to-quarter basis, exports remained the largest contributor to economic growth. Meanwhile, imports rose by 27.8%, also above forecasts of 26.5%. A significant portion of this increase was due to an 87.8% surge in petroleum imports linked to rising oil prices amid regional tensions.
