Post by : Shakul

Japan’s exports recorded their ninth consecutive month of growth in May, supported by a weaker yen, rising commodity prices and strong global demand for semiconductors linked to the artificial intelligence boom. Government data released on Wednesday showed export values increased 17 percent compared to the same month last year.

The growth exceeded market expectations of 16.2 percent and followed a 14.8 percent rise in April. However, economists noted that export volumes increased by only 0.5 percent, indicating that much of the growth came from higher prices rather than stronger shipment activity.

Demand for electronic components played a major role in boosting exports. Rising investments in artificial intelligence infrastructure and data centres increased prices for memory chips and non-ferrous metals, helping Japan’s technology sector maintain momentum despite uncertainty in global markets.

Exports to the United States increased by 12.5 percent in May, while shipments to China rose 17.9 percent compared with the previous year. These gains helped offset challenges created by supply disruptions linked to the recent conflict involving the United States, Israel and Iran.

Imports also increased by 12.5 percent during the month. Although Japan imported significantly less crude oil by volume, higher global energy prices pushed overall import values upward. Crude oil import volumes fell more than 57 percent while costs reached record highs in yen terms.

As a result, Japan posted a trade deficit of 378.7 billion yen in May, smaller than economists had expected. Separate economic data showed that core machinery orders rose 8.7 percent in April, suggesting that Japanese companies may be increasing investment despite global uncertainty.

Analysts cautioned that higher energy prices and ongoing shipping disruptions could continue to weigh on Japan’s economy. While an emerging agreement between the United States and Iran may eventually help restore stability in the Strait of Hormuz, experts believe it could take time before global energy supply chains fully recover.

#world news #Japan News #Economy #trade