Japan's trade surplus in Aug marks biggest increase in 24 years
Thursday, 27 September 2007
TOKYO, Sept 26 (AFP): Japan said today its trade surplus nearly quadrupled in August, marking the biggest increase in 24 years thanks to fast-growing exports to the rest of Asia and Europe.
The sharp increase, driven in large part by robust auto exports, helped to calm market jitters about the impact of slowing shipments to the US economy, which is feeling the pinch from credit market turmoil and a housing slump.
Rising exports are expected to keep Japan's economic recovery on track in the months ahead, although a US economic slowdown and resurgent oil prices could keep a lid on the trade surplus, analysts said.
The world's second-largest economy posted a trade surplus of 743.24 billion yen (6.5 billion dollars) in August, up 287.6 per cent from a year earlier, the finance ministry said.
It was the biggest year-on-year increase since May 1983, a finance ministry official said.
The report far exceeded market expectations of a surplus of about 267 billion yen and put the surplus back on a positive track after a 21.7 per cent drop in July, the first decline in six months.
Exports rose 14.5 per cent to 7.03 trillion yen while imports grew 5.7 per cent to 6.29 trillion yen, the finance ministry said.
"Asian economies will likely continue to grow strongly and Japanese exports to this region will continue to rise," said Mamoru Yamazaki, chief economist for RBS Securities Japan in Tokyo.
"That should offset the expected slowdown in the US economy and US demand," he said.
Worries about the health of the Japanese economy have increased following a recent batch of soft indicators including a 1.2 per cent annualised contraction in second-quarter gross domestic product.
The sharp increase, driven in large part by robust auto exports, helped to calm market jitters about the impact of slowing shipments to the US economy, which is feeling the pinch from credit market turmoil and a housing slump.
Rising exports are expected to keep Japan's economic recovery on track in the months ahead, although a US economic slowdown and resurgent oil prices could keep a lid on the trade surplus, analysts said.
The world's second-largest economy posted a trade surplus of 743.24 billion yen (6.5 billion dollars) in August, up 287.6 per cent from a year earlier, the finance ministry said.
It was the biggest year-on-year increase since May 1983, a finance ministry official said.
The report far exceeded market expectations of a surplus of about 267 billion yen and put the surplus back on a positive track after a 21.7 per cent drop in July, the first decline in six months.
Exports rose 14.5 per cent to 7.03 trillion yen while imports grew 5.7 per cent to 6.29 trillion yen, the finance ministry said.
"Asian economies will likely continue to grow strongly and Japanese exports to this region will continue to rise," said Mamoru Yamazaki, chief economist for RBS Securities Japan in Tokyo.
"That should offset the expected slowdown in the US economy and US demand," he said.
Worries about the health of the Japanese economy have increased following a recent batch of soft indicators including a 1.2 per cent annualised contraction in second-quarter gross domestic product.