TOKYO, JAPAN, July 21, 2021 /EINPresswire.com/ — TOKYO, Japan, July 21, 2021 /EINPresswire.com/ — The worldâ€™s third-largest economy saw its demand for exports surge higher following an increase of vehicle and chip-making equipment exported to China and the United States.
Financial services company Ishikawa Brookfield Trading noted that its analysts have seen Japanese exports rise over 48.65 in June compared to last year, its fourth straight consecutive month of double-digit growth. However, their analysts did highlight that it was primarily due to a COVID plunge from last year.
â€œWe have clearly seen a strong upward trajectory of export growth which has contributed to a recovering Japanese economy. An encouraging sign as exports grew over 23% in the first half of 2021, exceeding pre-pandemic levels seen in the first half of 2019,â€� said Shun Fujino, Head of Market Analysis at Ishikawa Brookfield Trading.
The higher exports were mainly due to exports to China, one of Japanâ€™s largest trading partners, which rose over 27.7% over the last twelve months. Exports were led by demand for chip-making equipment, raw materials, and plastic. While exports to the United States grew over 85% in June, driven mainly by shipments of cars and auto parts.
â€œJapanese exports remain in an uptrend focus backed by car exports as well as capital goods and information-related goods. Chinaâ€™s economy seems to be on hold; however, with the introduction of stimulus measures and the recovery being observed across Europe and America, we can confidently say that this influx of higher demand will be a positive contribution to Japanâ€™s healing economy,â€� contributed Christian Wells, Head of Private Investment Management at Ishikawa Brookfield Trading.
Analysts at Ishikawa Brookfield Trading expect Japanâ€™s economy to grow at an annualized rate of 4.2%, down from a previous 4.6% expansion projected previously. The government will release its preliminary estimate for the second-quarter GDP rates on August 16.
Ishikawa Brookfield Trading
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