FS Stapleton Alliance - Japan’s Exports Up as Trade Recovers

Japan’s exports help boost the economy as consumption weakens due to third wave of COVID-19 infections.

Hong Kong, Hong Kong S.A.R., June 12, 2021 --(PR.com)-- Japan’s exports posted the biggest monthly gain in more than a decade in April as global trade makes strides in rebounding from the impact of the pandemic. Analysts at FS Stapleton Alliance are hopeful that this increased demand for Japanese made cars and electronics could help Japan’s economy recover even as it faces significant challenges.

Confidence among Japan’s manufacturers reached a high not seen in more than two years last month as global demand and new orders from abroad steadily increase.

“Although the numbers are relative to a particularly low base from last year, real demand is certainly recovering,” said Mr. Eddy Leong, Chief Finance Officer at FS Stapleton Alliance.

With the world’s two largest economies, namely the US and China rebounding at a better than anticipated rate, demand from those countries has been encouraging. In April exports increased 38 percent from a year ago, slightly less than the 39 percent economists had predicted after a 16.1 percent expansion in March. FS Stapleton Alliance analysts say this was the fastest rate of growth since 2010.

Since the government implemented a third state of emergency towards the end of April, following the spread and emergence of more infectious COVID-19 variants, Japan’s economy has faced sluggish consumption. The robust rebound of exports has helped buoy the economy during this period.

Analysts at FS Stapleton Alliance believe Japan’s reliance on exports will continue given the slow rollout of the country’s vaccine campaign. Economists have warned that a lack of supply of semiconductors, auto vehicle components could have a negative impact on auto exports.

This, combined with uncertainty surrounding the once postponed Tokyo Olympic games and whether it should go ahead given the resurgence of COVID-19, could further weigh on Japan’s economic recovery.
FS Stapleton Alliance
Kyle Yuen