Japan's exports saw a 7.8% increase in February, driven by the continued expansion in the automotive and electrical machinery sectors, as per government data released on Thursday. This growth led to a trade deficit of 379 billion yen ($2.5 billion), marking the second consecutive month of deficit for the nation.
Imports in February grew in food, medical products, and computers, while witnessing a decline in autos and power-generating machines. The total imports inched up by 0.5% from the previous year, reaching nearly 9 trillion yen ($60 billion).
The positive trend in exports comes on the heels of the Bank of Japan's decision to raise its key interest rate for the first time in 17 years, moving it from below zero. Despite this, the central bank has committed to maintaining easy lending conditions while monitoring growth indicators.
Japan's exports to North America, Europe, and the Middle East showed growth last month, while imports exhibited a mixed picture, with gains from countries like India, China, and Brazil, and declines from Australia, alongside stability in other regions.
February's exports totaled 8.2 trillion yen ($55 billion), marking the third consecutive month of growth, according to the Finance Ministry's preliminary report. Notably, the tourism sector has shown a robust recovery, considered as exports statistically, surpassing pre-pandemic levels, despite Japan's restrictions on international travel during the COVID-19 crisis.
Although Japan's economy has been slowing down, exports have remained a strong pillar, reaching a record high of over 100 trillion yen ($670 billion) in 2023. The country has faced challenges with rising energy import costs since 2022 due to its limited domestic resources, although this pressure has gradually eased.
In 2023, Japan slipped in the global economic ranking, falling behind Germany to become the world's fourth-largest economy.
