Exports grew 7.8 percent in April from the same period a year ago, below the median estimate for an 8.1 percent annual increase expected by economists in a Reuters poll. In March, exports grew an annual 2.1 percent. (A man walks in front of containers and cranes at an industrial port in Tokyo, - Reuters filepic)
TOKYO: Japan's exports accelerated in April on increased shipments of cars and machines used to make semiconductors, suggesting healthy overseas demand could help the economy recover quickly from a dip in the first quarter.
Exports grew 7.8 percent in April from the same period a year ago, below the median estimate for an 8.1 percent annual increase expected by economists in a Reuters poll. In March, exports grew an annual 2.1 percent.
Exports are likely to continue to grow thanks to increased demand for manufacturing equipment, cars and car parts, but Japan's trade surplus with the United States makes it a potential target for U.S. President Donald Trump's protectionist policies.
Exports of cars rose 15.3 percent in April from the same period a year ago, while semiconductor manufacturing equipment exports rose 18.2 percent year-on-year, finance ministry data showed on Monday.
Japan's economy contracted more than expected at the start of this year, ending the best run of expansion in decades.
Trade data for April suggests the economy could quickly return to growth, but the rate of expansion could be slower than the previous growth spurt.
Japan's exports to the United States rose 4.3 percent year-on-year in April, faster than a 0.2 percent annual increase in March.
Japan's trade surplus with the United States was 615.7 billion yen ($5.55 billion) in April, up 4.7 percent from the same period a year ago. In March the trade surplus with the United States fell an annual 0.3 percent.
Since taking office last year, Trump has pushed to re-write free-trade deals to protect U.S. companies and jobs from what is seen as unfair foreign competition.
Trump has imposed tariffs on steel and aluminium imports, which affect Japanese companies, and has also criticised Japan for its low level of imports of American vehicles.
The United States and China have called off their threats of tariffs while they discuss ways China can buy more American goods to lower the U.S. trade deficit.
Some officials in Tokyo are worried that the United States could seek a similar measures from Japan. - Reuters
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