Japan's exports rose 23.2% in July from a year earlier, marking the fifth consecutive month of growth and the fastest pace since October 2022, according to Ministry of Finance data released on Wednesday. The figure beat economists' forecasts of around 18% in a Reuters poll.
The surge was led by semiconductor manufacturing equipment and electronic components, as global demand for chips remains robust. Shipments to Asia, particularly China and Taiwan, contributed significantly, while exports to the United States and Europe also increased.
Imports grew 16.5% year-on-year, resulting in a trade deficit of 621 billion yen ($4.2 billion), narrower than the previous month. The yen's weakness continued to inflate the value of exports in yen terms, though volumes also showed solid gains.
Economists note that while the strong export data supports Japan's economic recovery, risks remain from slowing global demand and potential U.S. tariff policies. The government maintains its view that the economy is recovering moderately.
