TOKYO: Japan’s exports rose at the fastest pace since 1980 in May and a key gauge of capital spending grew, helping the world’s third largest economy offset sluggish domestic demand as Covid-19 vaccinations boost business activity in key markets.
The jump in exports largely reflected a rebound in shipments from last year’s pandemic-driven plunge, but was a welcome sign as the economy struggles to rebound from the first quarter’s doldrums amid a prolonged coronavirus state of emergency.
Ministry of Finance data on Wednesday showed exports grew 49.6% year-on-year in May, versus a 51.3% increase expected by economists in a Reuters poll, led by US-bound car shipments.
The jump followed a 38% rise in April and marked the sharpest monthly increase since April 1980, when shipments surged 51.4%.
May’s rise largely reflected the recoil effect of a 28.3% plunge in May of 2020.
By region, exports to China, Japan’s largest trading partner, grew 23.6%, led by chip production equipment, hybrid cars and scrap copper, the trade data showed.
Exports to the United States, another key market for Japanese goods, jumped 87.9% in May, a record for year-on-year growth according to comparable data going back to January 1980, driven by cars and auto parts.
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