Japan’s exports grew by 7.8 per cent for the third consecutive month in February, driven by improved demand in the US, China, and the European Union, Reuters reported on Thursday, citing a data from the Japanese Ministry of Finance.
This positive trend surpasses economists’ expectations of a 5.3 per cent increase, according to a Reuters poll, and offers hope for policymakers aiming to boost growth following a weak performance last year.
The country’s imports in February increased by 0.5 per cent year-on-year, falling short of the expected 2.2 per cent rise. Meanwhile, the trade balance recorded a deficit of 379.4 billion yen, lower than the projected deficit of 810.2 billion yen.
The trade data follows the recent decision by the central bank to transition towards normalising policy by ending years of unconventional easing measures.
While the Bank of Japan (BOJ) has shifted away from massive monetary stimulus, it is likely to maintain near-zero interest rates to support the fragile economic recovery.
Concerns about the recovery persist, especially regarding the world’s fourth-largest economy, which narrowly avoided recession at the end of last year.
A Reuters survey indicated that confidence among major Japanese firms reached a three-month high in March, while the service-sector sentiment hit a seven-month peak.
