Japan: Exports growth accelerates in April

Export strength continued in April, with export volumes growing 28.1 percent year-over-year after 7.2 percent growth in the previous month, reported Oxford Economics. Shipments to China remained notably strong, while improvement was seen across destinations and sectors.

As the global recovery remains on track, Oxford Economics expects strong foreign demand to support Japan’s exports for the rest of the year. While global chip shortages will weigh on the auto sector, resilient manufacturing sector, robust Chinese demand and fiscal plans in the United States will underpin the bright external outlook.

Nominal goods exports rose 38 percent year-over-year in April, following 16.1 percent growth in March. Exports to China remained remarkably strong, growing 33.9 percent year-over-year in April (37.2 percent in March), in part boosted by last year’s low base, but less so than in March given that China’s COVID-19 outbreak peaked in first quarter 2020. Shipments