Japan’s export growth slows amid Chinese holiday impact
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The value of overall exports rose 4.2 per cent in February from a year earlier, after a big jump in the previous month.
PHOTO: REUTERS
- Japan's February exports grew 4.2% year-on-year, beating forecasts but slower than January due to weaker car shipments to the US and lower demand in China.
- Imports rose 10.2%, resulting in a trade surplus of ¥57.3 billion, while exports to China fell 10.9% due to Lunar New Year and lower equipment shipments.
- Car exports to the US fell 8% overall, but unit exports declined less, suggesting price cuts amid tariffs, while the weak yen averaged 155.65 per dollar.
AI generated
TOKYO – Japan’s exports grew at a slower pace as car shipments to the US fell and demand in China slumped due to the Lunar New Year holidays.
The value of overall exports rose 4.2 per cent in February from a year earlier, after a big jump in the previous month, the Finance Ministry reported on March 18. The result beat the median analyst forecast of a 1.9 per cent rise.
Imports rose 10.2 per cent, a little below the consensus estimate, as the trade balance swung to a surplus of 57.3 billion yen (S$460 million) on an unadjusted basis.
Exports to China declined 10.9 per cent as the Lunar New Year holidays took place in February 2026.
Double-digit drops in semiconductor manufacturing equipment, plastics and scientific optical equipment drove that decline even as shipments of semiconductors and other electronic components continued to surge on AI-related demand.
Exports to the US fell 8 per cent, led by a 14.8 per cent retreat in car shipments by value.
On a unit basis, exports of cars fell at a slower pace, indicating that Japanese manufacturers continue to protect market share in the US with price cuts as they contend with tariffs.
Exports to the EU advanced by 14 per cent, with strong results for cars and machinery used in the construction and mining industries.
The figures come as the global economy braces itself for the impact of the war in Iran, which started at the end of February and has since boosted inflation risks owing to higher oil prices.
Data released earlier in March confirmed that net exports did not make a positive contribution to the economy at the end of 2025 even as the weak yen supported exporters.
Japan’s currency averaged 155.65 per dollar in February, 0.7 per cent weaker than in the same month in 2025, according to the ministry. BLOOMBERG
