Key facts
- Japan's exports increased 23.2% year-on-year in July, reaching a record 11.5 trillion yen.
- This marks the 11th consecutive month of export growth.
- Exports to the U.S. rose 22% and to China increased 25.8%.
- Imports grew 27.8% year-on-year.
- Japan recorded a trade deficit of 634.5 billion yen in July.
Japan's exports reached a record high in July, increasing by 23.2% year-on-year to 11.5 trillion yen, exceeding market forecasts and marking the 11th consecutive month of growth. This performance underscores resilient global demand and provides support to an economy that relies on overseas shipments to offset weak domestic consumption and business investment. Imports also saw a significant rise of 27.8% year-on-year. Despite the strong export figures, Japan recorded a trade deficit of 634.5 billion yen in July. The resilience in exports could bolster the Bank of Japan's case for normalizing monetary policy, potentially with rate hikes as early as September. Exports to the United States grew by 22% and to China by 25.8% in July. Higher commodity and energy costs have contributed to increased export values, even as export volumes remained subdued.