Gold Silver Reports (GSR) – A continued growth in exports suggest the global recovery remains firm. Yet a stronger yen poses some risks, making imports cheaper, weighing on inflation and cutting into exporters’ profits. The risk of a trade war due to U.S. President Donald Trump’s tariffs is another potential source of downside pressure on Japan’s economy.
Economist Takeaways
✅ “In principle overseas economies are doing well, so I don’t see exports losing steam,” Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co., said before the data were released. “Domestic demand is also quite solid, and capital expenditure especially should be growing as firms invest in assets to reduce labor hours.”
✅ “China is rapidly increasing its investment into IT, so exports to China should keep increasing globally in that area.”
Other Details
✅ Japan’s adjusted trade balance showed a deficit of 201.5 billion yen (forecast -90.8 billion yen).
✅ Exports to China, Japan’s largest trading partner, slipped 9.7 percent in February from a year earlier.
✅ Shipments to the U.S. rose 4.3 percent.
✅ Those to the EU increased 11.5 percent.
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