Strong Global Demand Drives Japan's Export Growth

Japan's exports continued their upward trend in November, rising by 3.8% year-on-year, according to data released on Wednesday. This growth exceeded market forecasts of a 2.8% increase and followed a 3.1% rise in October, indicating robust global demand.

Exports to Key Markets Show Mixed Results

Exports to China, Japan's largest trading partner, increased by 4.1% in November compared to the previous year. In contrast, exports to the United States declined by 8%, reflecting the impact of protectionist trade policies.

Trade Deficit Narrows Despite Declining Imports

Imports fell by 3.8% year-on-year in November, contrary to market expectations of a 1% increase. Consequently, Japan recorded a trade deficit of ¥117.6 billion ($766.17 million), significantly lower than the forecasted deficit of ¥688.9 billion.

Uncertainty Looms Over Future Export Prospects

The outlook for Japan's exports remains uncertain, with nearly three-quarters of Japanese companies anticipating a negative impact from Donald Trump's next term as US president, according to a Reuters survey. The Bank of Japan is expected to carefully monitor external risks before making any adjustments to interest rates.