Japan posted record jump of 5.9 in exports

Japan pasted a record jumped in export as total exports were jumped by nearly 5.9% in March due to high rise in car exports. Car exports jumped by 33.6% in March compared to same month last year. Car export was exceptionally low in March last year due to the 11th March earthquake and tsunami which had caused massive damage to the sector last year.

The export data confirms faster recovery of Japanese automobile industry led by Automobile giants Nissan, Honda and Toyota. Also higher demand in the US market along with recent Yen depreciation has supported the growth in the previous month.

At the same time, Japanese imports jumped by 10.5% in March, resulting in a trade deficit of nearly USD 1 billion (82.6 billion yen). The jump in imports was mainly driven by energy (Coal, natural gas etc.) imports to run its thermal plants due to closure of most of its nuclear power plants after Fukushima Nuclear disaster.

This jump in export and drop in trade deficit is definitely a good news for Japanese economy which is expected to grow by 2% for the current year 2012.