Investing.com-- Japanese exports grew much more than expected in January, boosted by improved overseas demand for automobiles and electronics, although sluggish domestic demand saw a bigger-than-expected fall in imports.
Exports grew 11.9% year-on-year in January, much more than expectations for a 9.5% rise and the prior month’s reading of 9.8%, official data showed on Wednesday. The reading was also Japan’s fastest pace of export growth since November 2022.
Imports shrank 9.6%, more than expectations for a drop of 8.4% and accelerating from the 6.8% decline seen in December.
Higher exports and weaker imports saw Japan’s trade balance unexpectedly rise to a surplus of 240 billion yen ($1.60 billion), from a deficit of 410 billion yen in December.
The reading indicated that Japan’s major exporters were likely to continue benefiting from improved overseas demand and a weakening yen in the near-term, offering the economy some support. A recovery in tourism also factored into stronger exports.
But worsening imports signaled that local economic conditions were likely to remain subdued. Japan had unexpectedly entered a technical recession in the fourth quarter, recent data showed.