This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28862850
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Japan exports growth fuels recovery hopes | Japan exports growth fuels recovery hopes |
(35 minutes later) | |
Japanese exports showed a surprise rise in July, reigniting hopes of growth for the world's third largest economy. | Japanese exports showed a surprise rise in July, reigniting hopes of growth for the world's third largest economy. |
Exports rose 3.9% when compared to one year ago, helped by higher shipments of cars and electric machinery. It is the first increase in three months. | Exports rose 3.9% when compared to one year ago, helped by higher shipments of cars and electric machinery. It is the first increase in three months. |
Imports rose 2.3% in the same month, led by rising demand for oil and gas after the Fukushima disaster in 2011 led to a shutdown of nuclear reactors. | Imports rose 2.3% in the same month, led by rising demand for oil and gas after the Fukushima disaster in 2011 led to a shutdown of nuclear reactors. |
The government has pinned hopes of growth on an export-led recovery. | The government has pinned hopes of growth on an export-led recovery. |
Japan's trade deficit widened to 964 billion yen ($9.4bn; £5.6bn) in July, compared to a deficit of 822bn yen in June. | Japan's trade deficit widened to 964 billion yen ($9.4bn; £5.6bn) in July, compared to a deficit of 822bn yen in June. |
Analysts are hoping the export recovery will help offset a slump in domestic demand. But not everyone is convinced the turnaround in exports will be enough to sustain Japan's economy in the long term. | Analysts are hoping the export recovery will help offset a slump in domestic demand. But not everyone is convinced the turnaround in exports will be enough to sustain Japan's economy in the long term. |
"The data shows exports are recovering moderately as a trend, so external demand may offset some of the weakness in domestic demand ahead," said Takeshi Minami, chief economist at Norinchukin Research Institute. | "The data shows exports are recovering moderately as a trend, so external demand may offset some of the weakness in domestic demand ahead," said Takeshi Minami, chief economist at Norinchukin Research Institute. |
"But export growth is unlikely to accelerate much from here. Europe's economy lacks momentum and this will weigh on growth of Japan's big Asian export markets like China," he added. | "But export growth is unlikely to accelerate much from here. Europe's economy lacks momentum and this will weigh on growth of Japan's big Asian export markets like China," he added. |
Tax effect | Tax effect |
The Japanese economy contracted by an annualised 6.8% in the second quarter of the year, the biggest fall since 2011 when it was devastated by an earthquake and tsunami. | The Japanese economy contracted by an annualised 6.8% in the second quarter of the year, the biggest fall since 2011 when it was devastated by an earthquake and tsunami. |
The shrinkage was largely in response to a government sales tax, which held back consumer spending. | The shrinkage was largely in response to a government sales tax, which held back consumer spending. |
Japan's sales tax had risen from 5% to 8% in April. That was the first rise in 17 years. | Japan's sales tax had risen from 5% to 8% in April. That was the first rise in 17 years. |
The government is scheduled to consider later this year whether to raise the sales tax by another 2%, to 10%, in 2015. |
Previous version
1
Next version