Key facts
- Japan's exports rose 23.2% year-on-year in July to a record 11.5 trillion yen.
- This marks the 11th consecutive month of export growth for Japan.
- Exports to the U.S. increased by 22% and to China by 25.8% in July.
- Imports climbed 27.8% year-on-year to a record 12.1 trillion yen.
- 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, marking the 11th consecutive month of growth. This performance was driven by strong demand from the U.S. and China, with exports to the U.S. rising 22% and to China increasing 25.8%. Imports also saw a significant rise of 27.8% year-on-year to a record 12.1 trillion yen, largely due to elevated oil prices. Despite the robust export figures, Japan recorded a trade deficit of 634.5 billion yen in July, the third consecutive month of deficit. The resilience in exports could support the Bank of Japan's case for normalizing monetary policy, potentially with rate hikes as soon as September.