Japan exports rise in further sign of economic gains

TOKYO – Japanese exports rose for a fourth consecutive month in June, by 7.4% y/y, on rising demand from the US, EU and China which was boosted by competitive gains from the yen’s weakness. Imports rose by 11.8% y/y from 10.1% in May, resulting in a trade deficit of US$1.8 billion. Recent trade out-turns have been watched as an indicator of the effectiveness of Government steps to stimulate GDP growth ("Abenomics"). In this regard, BBVA Bank comments that this monthly economic assessment by the Government was upbeat, noting that "the economy is picking up steadily and shows some movements on the way to recovery".