Japan’s merchandise exports climbed 23.2% year-on-year in July, the 11th consecutive monthly increase, according to data released by the Ministry of Finance on Thursday.
The gain exceeded economists’ expectations of a 19.9% rise in a Reuters poll, reflecting continued strength in shipments of semiconductors, automobiles and capital goods. Imports also accelerated, rising 27.8% from a year earlier, above the 26.5% forecast.
The trade balance recorded a deficit of 634.5 billion yen ($4.01 billion) for the month, compared with a projected shortfall of 680 billion yen. The yen traded at 158.25 per dollar, a level that has weighed on import costs and contributed to the wider-than-expected trade gap.
The data underscores the dual pressures facing Japan’s trade position: robust external demand supporting exports while a weaker currency and elevated global commodity prices inflate import bills.
