Japan's trade zooms amid world's recovery from Covid pandemic

Tokyo: Japan's exports in June jumped 48.6 per cent from the year before, marking the fourth straight month of growth, the Finance Ministry said Wednesday.

Imports for the month grew 32.7 per cent, totaling 6.83 trillion yen ($62 billion). Exports for the month totaled 7.2 trillion yen ($66 billion), according to government data.

The increases were exaggerated by a plunge in trade last year due to the pandemic. But they highlight the recovery in the world's third largest economy as a global rebound in business activity and travel boosts demand.

Exports to the US surged 86 per cent in June from a year earlier, led by shipments of cars and computer parts. Exports to China rose 28 per cent, with strong growth in vehicles, semiconductor making equipment and computer parts, the data showed.

Japan logged a trade surplus of 985 billion yen ($9 billion) in the first half of the year, the second straight surplus in a row.

The economy has been hit hard by the pandemic, shrinking at a revised annual rate of 3.9 per cent in January-March, as COVID-related restrictions crimped domestic demand. Data due to be disclosed next month are likely to show the contraction continued into the second quarter.

Worries are growing about coronavirus infections surging, as tens of thousands of athletes, team officials and other dignitaries enter the country for the Tokyo Olympics, opening this week. About 15,000 Japanese have died so far and just over a fifth of the population is fully vaccinated. Dozens of people affiliated with the Games have already tested positive for the virus.

Japan has never had a lockdown, but parts of the nation, including Tokyo, have been under a government state of emergency much of the year, with restaurants and bars closing early to minimize crowds gathering. The government expects the economy to come roaring back as the vaccine rollout becomes more widespread by the end of this year.