Koji Sasahara
A year earlier, exports had slumped due to the pandemic. This time, demand from the USA grew at a record rate of 87.9 percent. 23.6 percent more was delivered to its most important trading partner China, with systems for the production of semiconductors, hybrid cars and copper scrap in particular being in demand. Imports to Japan also rose sharply, by 27.9 percent.
The third largest economy after the USA and China shrank in the first quarter by 1.3 percent compared to the previous quarter, mainly due to the lower consumer spending due to the Corona. “The upward trend in exports and capital spending will help to cushion the slack in the second quarter,” said the chief economist of the Norinchukin research institute, Takeshi Minami. “However, export growth could be slowed down as a global shortage of chips will weigh on car production for the next six months.”
For the year as a whole, the chances of significant growth are not bad. The International Monetary Fund (IMF) believes that Japan will achieve a gross domestic product of 3.3 percent in 2021.