Japan's exports post largest monthly gain since late 2017

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Japan's exports posted their strongest growth in more than three years in March, led by a surge in China-bound shipments, in a sign the economic recovery from last year's deep coronavirus slump remains intact.

However, the trade data is unlikely to completely ease worries about the fragile recovery of the world's third-largest economy, which took an enormous hit from a collapse in global trade due to the pandemic in the first quarter of 2020.

"The rebound in exports slowed significantly across Q1 and external demand is unlikely to provide much of a tailwind to growth this year," said Tom Learmouth, Japan economist at Capital Economics.The exports surge was also marked by especially strong shipments to Japan's largest trading partner China, while the pace of recovery in firms' exports to the United States remained relatively slow, said analysts.

Shipments to China, Japan's largest trading partner, soared 37.2% in the year to March, led by nonferrous metals and plastic materials, and also boosted by stronger exports of semiconductor machinery. Exports to the United States, the world's top economy, rose 4.9% to post their first year-on-year gain in five months, as strong demand for cars and construction machinery such as bulldozers offset lower shipments of aircrafts.

 

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