Government data revealed that Japanese exports It rose for the first time in two years in December, driven by shipments to China, providing a glimmer of hope for policymakers who are counting on an export-led recovery amid an increase in coronavirus cases.
A recovery in exports may ease the risk of another recession after a recovery period, while the Bank of Japan is expected to update its growth forecast for the next fiscal year in its review of the expired interest rate, on Thursday. The central bank is expected to keep its policy unchanged.
Today, Thursday, Ministry of Finance data revealed that Japanese exports increased 2 percent in December year-on-year, which is slightly less than the increase expected by economists in a Reuters poll, but an increase compared to a 4.2 percent decrease in the previous month. .
This is the first year-on-year increase since November 2018.
In a worrying sign, auto exports fell 4.2% from the start of the year to December, as shipments to the European Union decreased 32.2%. This decline comes as car manufacturers, such as Toyota Motor and Nissan Motor, are scheduled to reduce their production of cars this month due to a shortage of semiconductors, after demand recovered from the Corona crisis.
The data revealed that Japanese auto exports fell in the whole of 2020 by 20%, in the biggest decline since shipments halved during the global financial crisis in 2009, which is the main factor contributing to the overall decline in annual exports by 11.1%.