Japan has logged a surplus of 111.8 billion yen (S$1.4 billion) with China – its first in five years. Overall, Japan’s seasonally adjusted trade surplus stood at 680.3 billion yen. This is the highest since April 2010.
Analysts said that February’s 8.3 per cent growth in the volume of exports, and average export volume growth of around 4 per cent in January, was a positive sign for the export-reliant economy this quarter.
“Year-on-year exports to Asia were extremely strong, but those to the US and EU didn’t grow very much,” said a senior economist. “If exports as a whole are growing, it’s good for the economy, but if numbers for the US and EU are weak, I worry about its sustainability.”
Japan has been struggling to reverse a years-long deflationary period of falling prices and lacklustre growth. Falling oil prices have eased Japan’s trade balance, and exports are seen as a bright light for the world’s No. 3 economy.